Find the present worth of the annuity paying P5,000 per month at a rate of 12% compounded quarterly forever.

(a) P505,050.50 (b) P505,550.50 (c) P550,050.50 (d) P505,500.50

don't you have a handy formula for annuities?

To find the present worth of the annuity, we can use the formula for the present value of a perpetuity:

PV = PMT / r

Where PV is the present value, PMT is the payment per period, and r is the interest rate per period.

In this case, the payment per period is P5,000 per month, which means PMT = 5000 * 12 = P60,000 per year.

The interest rate is 12% compounded quarterly, so we need to adjust it to the quarterly rate. The quarterly interest rate is 12% / 4 = 3%.

Now we can calculate the present value:

PV = 60000 / (0.03) = P2,000,000.

Therefore, the present worth of the annuity is P2,000,000, which is not one of the given answer choices. None of the answer choices provided (a), (b), (c), or (d) is correct.

To find the present worth of the annuity, we can use the formula for the present value of perpetuity. The formula is:

PV = A / r

Where PV is the present value, A is the annuity payment, and r is the interest rate per compounding period.

In this case, the annuity payment is P5,000 per month, and the interest rate is 12% compounded quarterly, which means the interest rate per compounding period is 12% / 4 = 3%.

Substituting these values into the formula:

PV = P5,000 / 3% = P5,000 / 0.03 = P166,666.67

Therefore, the present worth of the annuity is P166,666.67.

None of the given options (a), (b), (c), or (d) match the calculated present worth.