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Exercise 5-13(Algo) Present value; ordinary annuity (LO 5-8) Denzel needs a new car. At...

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Accounting

Exercise 5-13(Algo) 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:
Pay $26,500 today for the car.
Pay $2,300 at the end of each quarter for three years.
Required:
1-a. Assuming Denzel uses a discount rate of 8%(or 2% 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.
Req 1B
Assuming Denzel uses a discount rate of 8%(or 2% 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)
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