Sales of bottled water in the U.S totaled 16.3 gallons per person in 2004. Water costs .40 cents per bottle.A municipal company provides tap water for $2.10 per 1000 gallons. If the average person drinks two bottles of water per day or uses 5 gallons per day in getting that amount of water from the tap, what are the present worth values of drinking botled water or tap water per person for 1 year?Use an interest rate of 6% per year compounded monthly and 30 days per month.

To calculate the present worth values of drinking bottled water or tap water per person for 1 year, we need to consider the cost of both options and apply the interest rate.

First, let's calculate the cost of drinking bottled water per person for 1 year:
- The cost per bottle is $0.40, and the average person drinks two bottles per day.
- So, the cost per person per day is 2 bottles/day * $0.40/bottle = $0.80/day.
- Multiplying the daily cost by 365 days in a year gives us the yearly cost per person: $0.80/day * 365 days = $292/year.

Next, let's calculate the cost of using tap water per person for 1 year:
- The municipal company provides tap water for $2.10 per 1000 gallons, and the average person uses 5 gallons per day.
- So, the cost per person per day is (5 gallons/day * $2.10) / 1000 = $0.0105/day.
- Multiplying the daily cost by 365 days in a year gives us the yearly cost per person: $0.0105/day * 365 days = $3.8325/year.

Now, let's calculate the present worth values using an interest rate of 6% per year compounded monthly:

For the bottled water option:
- We need to calculate the present worth value of $292/year for 1 year.
- Using the formula for present worth value with monthly compounding: PV = C * (1 - (1 + r)^(-n)) / r, where C is the cash flow, r is the interest rate per period, and n is the number of periods.
- Plugging in the values: PV = $292 * (1 - (1 + (0.06/12))^(-1*12)) / (0.06/12)
- Solving this equation gives us the present worth value for the bottled water option.

For the tap water option:
- We need to calculate the present worth value of $3.8325/year for 1 year.
- Using the same formula as before: PV = $3.8325 * (1 - (1 + (0.06/12))^(-1*12)) / (0.06/12)
- Solving this equation gives us the present worth value for the tap water option.

By calculating these equations, we can determine the present worth values for both options.