Which one of these statements related to growing annuities and perpetuities is correct? You can compute the present value of a growing annuity but not a growing perpetuity. In computing the present value of a growing annuity, you discount the cash flows using the growth rate as the discount rate. The future value of an annuity will decrease if the growth rate is increased. An increase in the rate of growth will decrease the present value of an annuity. The present value of a growing perpetuity will decrease if the discount rate is increased.

Jason is looking for an engagement ring to offer his girlfriend. he has found a similar ring at each of four different jewelry stores. he doesn't have enough money to pay for the ring in cash, so he is planning on opening a line of credit (credit card) at the store he ends up buying the ring from. the chart below outlines the difference in the price of the rings the different stores offer as well as the difference in credit options. jason plans to pay off the ring purchase in 36 months. according to the information in the table, which of the jewelry stores will have the cheapest ring in the end?