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You recently won a contest sponsored by a local radio station. The radio station will pay you $3,000 at the end of each of the
You recently won a contest sponsored by a local radio station. The radio station will pay you $3,000 at the end of each of the next 11 years. Assuming an interest rate of 3%, what is the present value of this prize? (Click the icon to view the present value of $1 table.) EEB (Click the icon to view the present value of annuity of $1 table.) O A. $38,424 O B. $25,590 O C. $27,759 O D. $47,811 resent Value of $1 Periods 10 2% 0.820 0.804 0.788 0.773 0.758 0.743 3% 0.744 0.722 0.701 0.681 0.661 0.642 4% 0.676 0.650 0.625 0.601 0.577 0.555 5% 0.614 0.585 0.557 0.530 0.505 0.481 6% 0.558 0.527 0.497 0.469 0.442 0.417 12 13 15 Present Value of Annuity of $1 Periods 10 2% 8.983 9.787 10.575 11.348 12.106 12.849 3% 8.530 9.253 9.954 10.635 11.296 11.938 4% 8.760 9.385 9.986 10.563 11.118 5% 7.722 8.306 8.863 9.394 9.899 10.380 5% 7.360 7.887 8.384 8.853 9.295 9.712 12 13 15
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