James wants to purchase a 2017 911 for $120,00. Two financing options are available for him:
Option 1: 6 % APR compounded monthly, $20,000 down payment and 60 equal monthly payments.
Option 2: 5% APR compounded continuously, $10,000 down payment and 36 equal monthly payments.
a) What is the monthly payment for each these two financing options?
b) Suppose James can always invest his money with a rate of return of 6% per year, recommend the option he should choose through present worth analysis.