Answer:
P = 700 (P/F, 10%, 1) + 7,000 (P/F, 10%, 4)   ........ (2nd option)
Explanation:
This question is related to Uniform Series Present Worth.
General equation for USPW is 
                     P = F (P/F, i, n)
Where,
                     P = Present worth
                     F = Uniform arithmetic series value
                     P/F = Uniform series present worth factor
                     i = Interest rate
                     n = Number of years     (Note: n is not given in question, it can be derived form given equation for F1 n = 1 and for F2 n = 4)
Lets solve for F1. Where F1 = 700, i = 10% and n = 1  
                   P = 700 (P/F, 10%, 1)   ........................ eq (1)
Now solve for F2. Where F2 = 7,000, i = 10% and n = 4
                   P = 7,000 (P/F, 10%, 4) .......................... eq (1) 
By combining these 2 equations we get
                  P = 700 (P/F, 10%, 1) + 7,000 (P/F, 10%, 4)  ................... Answer.