Question

What is the present value today of $2,300 received two years from now with a rate of return equal to 4%?

Answer 1

present value = $2126.47

Step-by-step explanation:

given data

future value = $2,300

time t = 2 year

rate of return r = 4%

solution

we get here present value that is express as

future value = present value ×
`(1+r)^(t)` ..............1

put here value and we get

$2,300 = present value ×
`(1+0.04)^(2)`

present value =
`(2300)/(1.04^2)`

present value = $2126.47