A car salesperson gives you four alternative ways to pay for your car.The first is to pay $18,000 today.The second is to pay $19,000 one year from today.The third is to pay $20,300 two years from today.The fourth is to pay $21,500 three years from today.If the interest rate is 6 percent,which payment option has the lowest present value and which has the highest?
A)The first is lowest;the second is highest.
B)The second is lowest;the third is highest.
C)The third is lowest;the fourth is highest.
D)The fourth is lowest;the first is highest.

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The Answer of A car salesperson gives you four alternative ways to pay for your car.The first is to pay $18,000 today.The second is to pay $19,000 one year from today.The third is to pay $20,300 two years from today.The fourth is to pay $21,500 three years from today.If the interest rate is 6 percent,which payment option has the lowest present value and which has the highest?
A)The first is lowest;the second is highest.
B)The second is lowest;the third is highest.
C)The third is lowest;the fourth is highest.
D)The fourth is lowest;the first is highest.

A Car Salesperson Gives You Four Alternative Ways to Pay