Please show work and completed steps for the following question(s):

After graduating from IU, you have a student loan that must be paid off. Your lender gives you two choices: (a) pay a fixed amount $2000 each year (starting a year from now) for 8 years, or (b) pay escalating amounts that start at $1500 (a year from now) and increase by 1% each year for 11 years. Assuming a discount rate of 5%, which has a lower present value?