Question: one question. 2 parts to 1 question Exercise 5-13 (Static) Present value; ordinary annuity (LO 5-8) Denzel needs a new car. At the dealership, he

one question. 2 parts to 1 question Exercise 5-13 (Static) Present

value; ordinary annuity (LO 5-8) Denzel needs a new car. At the

one question. 2 parts to 1 question

Exercise 5-13 (Static) Present value; ordinary annuity (LO 5-8) Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options: 1. Pay $35,000 today for the car. 2. Pay $4,000 at the end of each quarter for three years. Required: 1-a. Assuming Denzel uses a discount rate of 12% (or 3\% quarterly), calculate the present value. 1-b. Which option gives him the lower cost? Complete this question by entering your answers in the tabs below. Assuming Denzel uses a discount rate of 12% (or 3% quarterly), calculate the present value. Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1,PV of $1,FVA of $1, and PVA of $1 ) Exercise 5-13 (Static) Present value; ordinary annuity (LO 5-8) Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options: 1. Pay $35,000 today for the car. 2. Pay $4,000 at the end of each quarter for three years. Required: 1-a. Assuming Denzel uses a discount rate of 12% (or 3% quarterly), calculate the present value. 1-b. Which option gives him the lower cost? Complete this question by entering your answers in the tabs below. Which option gives him the lower cost

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