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 that sum?

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asked Jan 24, 2018 115k views

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Crthompson · Answer 1 · 2018-01-31T00:48:03+0000

You want to know the amount you started with so the formula is: Principal = Total ÷ (1 + Rate)^years Principal = 4,370.91 ÷ (1.03)^3 Principal = 4,370.91 ÷ 1.092727 Principal = $4,000.00

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 that sum?

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