Final answer:
The present value of the washing machine that costs $659 due in one year with an 8% discount rate is $610.19.
Step-by-step explanation:
The student is asking how to calculate the present value of a washing machine that has a future payment due in one year, given an annual discount rate. To determine the present value, you would use the formula for present value which is: Present Value = Future Value / (1 + r)^n, where r is the annual interest rate (expressed as a decimal) and n is the number of years.
In this case, the future value of the washing machine is $659, the annual interest rate is 8.0% or 0.08, and the number of years is 1. Plugging these values into the formula gives:
Present Value = $659 / (1 + 0.08)^1 = $659 / 1.08 = $610.19
Thus, the amount you would pay for the washing machine today is $610.19, after rounding to two decimal places.