You are having a hard time deciding whether to get full coverage insurance for your new Suzuki GSX R$1000$ crotch rocket or to get the minimum coverage for Colorado. The motorcycle shop gives you a sweet deal, you pay $$15,000$ for the bike. Full coverage insurance will cost you $$400$ per month. In the event of theft you have a $$500$ deductible, but after that the bank will give you full book value of the bike assuming a useful life of $10$ years and straight line depreciation. Salvage value after $10$ years is $$3000.$ Bare bones liability $($does not cover theft and will give you no money for a stolen bike$)$ will cost you $$100$ per month. You are planning a trip to Daytona in exactly $2$ years, at that time the bike is guaranteed to get stolen and you will not buy another. To help you make up your mind, assume a discount rate of $6\frac{\%}{?}$ year compounded monthly $-$ you must consider the time$-$value of money! Don't simply add the cash flows.

Determine the net present value to answer: Full Coverage or Colorado minimum?

$(5$ point extra credit$)$ Did you convince your parents or somebody else to help you open a Roth IRA and match you dollar$-$for$-$dollar? Provide proof $($email$,$ screen shot of text, etc.$)$ Please follow through and actually open a Roth IRA. $($For international students, please provide proof for an equivalent investment in your country$)$