Thank you for the opportunity to help you with your question!

We just need to use the following expression:

F=P(1 + r*t)

So first, we solve for P by dividing by (1+ r*t) from both sides like this.

F /(1+r*t) = P*(1+r*t)/(1+r*t) -------------> F/(1+r*t) = P -----------------> P = F/(1+r*t)

So we know: F = $3,720 ; t = 3 years ; r = 8% / year = 8/100 = 0.08 (in decimal form)

Then we enter 3,720 in place of I, 3 in place of t, and 0.08 in place of r into the equation.

P = 3,720/(1+0.08*3) = 3,720/(1+0.24) =3,720/1.24 = 3000

Final answer: P = $ 3000 (so it's option C).

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