Share your insights or perspective on the financial matter presented in the input.

Comparing the present value of total payment today and partial payments over 3 months
Its kind of a dumb question because no one believes that you can earn 8% in the short term in the market, but for arguments sake the math is painfully easy.  Keep in mind I am an engineer not a finance guy. So the first payment will earn you one month at 8%, the second, two.  In effect three months at 8% on 997.  You can do it that way because the payments are equal: 997 * (.08 /12) *3 = earnings ~= 20 So with the second method you pay: 997 * 3 - 20 =  2971