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

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: 1. Pay \( \$ 28,000 \) today for the car. 2. Pay \( \$ 2,600 \) 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. Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options: 1. Pay \( \$ 28,000 \) today for the car. 2. Pay \( \$ 2,600 \) 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?