On Joe Martin's graduation from college, Joe's uncle promised him a gift of $12,000 in cash...

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On Joe Martin's graduation from college, Joe's uncle promised him a gift of $12,000 in cash or $900 every quarter for the next 4 years after graduation. Assume money could be invested at 8% compounded quarterly. (Use Table 13.2.) a. Calculate the present value of options. Note: Do not round intermediate calculations. Round your answers to the nearest cent. Option 1 Option 2 Present value b. Which offer is better for Joe? O Option 1 O Option 2 TABLE 13.2 Present value of an annuity of $1 ¹2% 0.9950 1.9851 2.9702 3.9505 4.9259 5.8964 Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 40 50 1% 2% 3% 4% 0.9615 5% 0.9524 0.9901 0.9804 0.9709 1.9704 1.9416 1.9135 1.8861 1.8594 2.9410 2.8839 2.8286 2.7751 2.7232 3.9020 3.8077 3.7171 3.6299 3.5459 4.8534 4.7134 4.5797 4.4518 4.3295 5.7955 5.6014 5.4172 5.2421 5.0757 6.8621 6.7282 6.4720 6.2303 6.0021 5.7864 7.8230 7.6517 7.3255 7.0197 6.7327 6.4632 8.7791 8.5660 8.1622 7.7861 7.4353 7.1078 9.7304 9.4713 8.9826 8.5302 8.1109 7.7217 10.6770 10.3676 9.7868 9.2526 8.7605 8.3064 11.6189 11.2551 10.5753 9.9540 9.3851 8.8632 12.5562 12.1337 11.3483 10.6350 13.4887 13.0037 14.4166 13.8650 15.3399 14.7179 9.9856 9.3936 12.1062 11.2961 10.5631 9.8986 12.8492 11.9379 11.1184 10.3796 13.5777 12.5611 11.6523 10.8378 16.2586 15.5622 14.2918 13.1661 12.1657 11.2741 17.1728 16.3983 14.9920 13.7535 12.6593 11.6896 18.0824 17.2260 15.6784 14.3238 13.1339 12.0853 18.9874 18.0455 16.3514 14.8775 13.5903 12.4622 23.4457 22.0231 19.5234 17.4131 15.6221 14.0939 27.7941 25.8077 22.3964 19.6004 17.2920 15.3724 36.1723 32.8347 27.3554 23.1148 19.7928 17.1591 44.1428 39.1961 31.4236 25.7298 21.4822 18.2559 J انان بلوار اراملی 10% 11% 12% 6% 0.9434 7% 0.9346 8% 0.9259 9% 0.9174 0.9091 0.9009 0.8929 1.8334 1.8080 1.7833 1.7591 1.7355 1.7125 1.6901 2.6730 2.6243 2.5771 2.4018 3.4651 3.3872 3.3121 2.5313 2.4869 2.4437 3.1024 3.0373 3.6959 4.4859 4.3553 4.2305 3.2397 3.1699 3.8897 3.7908 4.2124 4.1002 3.9927 4.9173 4.7665 4.6229 5.5824 5.3893 5.2064 6.2098 5.9713 5.7466 6.8017 6.5152 6.2469 7.3601 7.0236 6.7101 7.8869 7.4987 7.1390 7.5361 7.9038 8.7455 8.2442 9.1079 8.5595 3.6048 4.1114 5.0330 4.8684 4.7122 4.5638 5.5348 5.3349 5.1461 4.9676 5.9952 5.7590 5.5370 5.3282 6.4177 6.1446 5.8892 5.6502 6.8052 6.4951 6.2065 5.9377 7.1607 6.1944 7.4869 7.1034 6.7499 6.4235 8.3838 7.9427 6.8137 6.4924 8.8527 8.3576 6.6282 7.7862 7.3667 6.9819 8.0607 7.6061 7.1909 6.8109 8.3126 7.8237 7.3792 6.9740 9.2950 9.7122 10.1059 9.4466 8.8514 10.4773 9.7632 9.1216 10.8276 10.0591 9.3719 11.1581 10.3356 9.6036 11.4699 10.5940 8.5436 8.0216 7.5488 7.1196 8.7556 8.2014 7.7016 7.2497 8.9501 8.3649 7.8393 7.3658 9.8181 9.1285 8.5136 7.9633 7.4694 9.8226 9.0770 8.4217 7.8431 9.4269 8.6938 8.0552 12.7834 11.6536 10.6748 13.7648 12.4090 11.2578 10.2737 15.0463 13.3317 11.9246 10.7574 9.7790 15.7619 13.8007 12.2335 10.9617 9.9148 9.0417 8.3045 8.9511 8.2438 alm .. On Joe Martin's graduation from college, Joe's uncle promised him a gift of $12,000 in cash or $900 every quarter for the next 4 years after graduation. Assume money could be invested at 8% compounded quarterly. (Use Table 13.2.) a. Calculate the present value of options. Note: Do not round intermediate calculations. Round your answers to the nearest cent. Option 1 Option 2 Present value b. Which offer is better for Joe? O Option 1 O Option 2 TABLE 13.2 Present value of an annuity of $1 ¹2% 0.9950 1.9851 2.9702 3.9505 4.9259 5.8964 Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 40 50 1% 2% 3% 4% 0.9615 5% 0.9524 0.9901 0.9804 0.9709 1.9704 1.9416 1.9135 1.8861 1.8594 2.9410 2.8839 2.8286 2.7751 2.7232 3.9020 3.8077 3.7171 3.6299 3.5459 4.8534 4.7134 4.5797 4.4518 4.3295 5.7955 5.6014 5.4172 5.2421 5.0757 6.8621 6.7282 6.4720 6.2303 6.0021 5.7864 7.8230 7.6517 7.3255 7.0197 6.7327 6.4632 8.7791 8.5660 8.1622 7.7861 7.4353 7.1078 9.7304 9.4713 8.9826 8.5302 8.1109 7.7217 10.6770 10.3676 9.7868 9.2526 8.7605 8.3064 11.6189 11.2551 10.5753 9.9540 9.3851 8.8632 12.5562 12.1337 11.3483 10.6350 13.4887 13.0037 14.4166 13.8650 15.3399 14.7179 9.9856 9.3936 12.1062 11.2961 10.5631 9.8986 12.8492 11.9379 11.1184 10.3796 13.5777 12.5611 11.6523 10.8378 16.2586 15.5622 14.2918 13.1661 12.1657 11.2741 17.1728 16.3983 14.9920 13.7535 12.6593 11.6896 18.0824 17.2260 15.6784 14.3238 13.1339 12.0853 18.9874 18.0455 16.3514 14.8775 13.5903 12.4622 23.4457 22.0231 19.5234 17.4131 15.6221 14.0939 27.7941 25.8077 22.3964 19.6004 17.2920 15.3724 36.1723 32.8347 27.3554 23.1148 19.7928 17.1591 44.1428 39.1961 31.4236 25.7298 21.4822 18.2559 J انان بلوار اراملی 10% 11% 12% 6% 0.9434 7% 0.9346 8% 0.9259 9% 0.9174 0.9091 0.9009 0.8929 1.8334 1.8080 1.7833 1.7591 1.7355 1.7125 1.6901 2.6730 2.6243 2.5771 2.4018 3.4651 3.3872 3.3121 2.5313 2.4869 2.4437 3.1024 3.0373 3.6959 4.4859 4.3553 4.2305 3.2397 3.1699 3.8897 3.7908 4.2124 4.1002 3.9927 4.9173 4.7665 4.6229 5.5824 5.3893 5.2064 6.2098 5.9713 5.7466 6.8017 6.5152 6.2469 7.3601 7.0236 6.7101 7.8869 7.4987 7.1390 7.5361 7.9038 8.7455 8.2442 9.1079 8.5595 3.6048 4.1114 5.0330 4.8684 4.7122 4.5638 5.5348 5.3349 5.1461 4.9676 5.9952 5.7590 5.5370 5.3282 6.4177 6.1446 5.8892 5.6502 6.8052 6.4951 6.2065 5.9377 7.1607 6.1944 7.4869 7.1034 6.7499 6.4235 8.3838 7.9427 6.8137 6.4924 8.8527 8.3576 6.6282 7.7862 7.3667 6.9819 8.0607 7.6061 7.1909 6.8109 8.3126 7.8237 7.3792 6.9740 9.2950 9.7122 10.1059 9.4466 8.8514 10.4773 9.7632 9.1216 10.8276 10.0591 9.3719 11.1581 10.3356 9.6036 11.4699 10.5940 8.5436 8.0216 7.5488 7.1196 8.7556 8.2014 7.7016 7.2497 8.9501 8.3649 7.8393 7.3658 9.8181 9.1285 8.5136 7.9633 7.4694 9.8226 9.0770 8.4217 7.8431 9.4269 8.6938 8.0552 12.7834 11.6536 10.6748 13.7648 12.4090 11.2578 10.2737 15.0463 13.3317 11.9246 10.7574 9.7790 15.7619 13.8007 12.2335 10.9617 9.9148 9.0417 8.3045 8.9511 8.2438 alm ..

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