P 7,654.04
P 7,731.29
P 7,420.89
P 7,590.12
Answer is Right!
Answer is Wrong!
The correct answer is A. P 7,654.04.
The present worth of an annuity is
the amount of money that would need to be invested today in order to receive a series of equal payments in the future. The present worth of an annuity is calculated using the following formula:$PW = \dfrac{A}{1+r}^n$
where:
- $PW$ is the present worth of the annuity
- $A$ is the amount of each payment
- $r$ is the interest rate
- $n$ is the number of payments
In this case, we are given that $A = 3,000$, $r = 8\%$, and $n = 1$. Substituting these values into the formula, we get:
$PW = \dfrac{3,000}{1+0.08}^1 = 7,654.04$
Therefore, the present worth of the annuity is P 7,654.04.
Option B is incorrect because it is the present worth of an annuity with an interest rate of 9%. Option C is incorrect because it is the present worth of an annuity with an interest rate of 7%. Option D is incorrect because it is the present worth of an annuity with an interest rate of 6%.