Question

If the interest rate is 3% and a total of $4,370.91 will be paid to you at the end of 3 years, what is the present value of the sum

Answer 1

vp= $1,989.49

Step-by-step explanation:

To calculate the present value we use the following formula;

`vp = (vf)/(1+i^(n) )`

`vp = (4,370.91)/((1+0.3)^(3) ) = 1,989.49`