A company is obligated to make annual payments to a pension fund at the end of the next three years. The present value of those payments is to be $100,000. Which of the following amounts is nearest the amount which must be paid annually if the fund is projected to earn interest at the rate of 8% per year?

Multiple Choice

1. $38,803

2. $41,990

3. $33,333

4. None of the other alternatives are correct

5. $26,461