A Delivery Service Is Buying 600 Tires for Its Fleet

Multiple Choice

A delivery service is buying 600 tires for its fleet of vehicles.One supplier offers to supply the tires for $85 per tire,payable in one year.Another supplier will supply the tires for $20,000 down today,then $50 per tire,payable in one year.What is the difference in PV between the first and the second offer,assuming interest rates are 8.5%?

A) $1000
B) $276
C) $645
D) -$1000
E) -$645