To find the present value of the annuity, we use the formula:
PV = P \times \left(1 - (1 + r)^{-n}\right) / r
Given:
- P = ₡250,000
- r = \frac{36\%}{12} = 0.03 (monthly interest rate)
- n = 84
Substitute the values into the formula:
PV = 250,000 \times \left(1 - (1 + 0.03)^{-84}\right) / 0.03
Calculate:
PV = 250,000 \times \left(1 - 1.03^{-84}\right) / 0.03 \approx ₡7,637,521.39
The total cash value of the car is the sum of the present value of the annuity and the initial premium:
₡7,637,521.39 + ₡1,100,000 = ₡8,737,521.39
Therefore, the cash value of the car when the financing option is chosen is approximately ₡8,737,521.39.
\boxed{₡8,737,521.39}