Answer:
Explanation:
To find the present value of a future amount, we can use the present value formula:
Present Value = Future Value / (1 + r)^n
Where r is the interest rate and n is the number of periods.
In this case, the future value is $2,000.00, the interest rate is 7%, and the number of periods is 3 years. Plugging these values into the formula, we get:
Present Value = 2,000 / (1 + 0.07)^3
Present Value = 2,000 / 1.225043
Present Value = $1,632.98 (rounded to the nearest cent)
Therefore, the present value of the $2,000.00 that Ms. Wang-Wang Nah will receive three years from now, assuming a 7% interest rate, is $1,632.98.