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 $80 per tire, payable in one year. Another supplier will supply the tires for $20,000 down today, then $45 per tire, payable in one year. What is the difference in PV between the first and the second offer, assuming interest rates are 8.1%?

A) -$860
B) -$229
C) -$574
D) $860