Answer:
Present value = $115,278.17
Step-by-step explanation:
Given data:
Monthly repay amount for 2 year = $2500
Monthly repay amount for another 2 year = $3500
APR =6%
monthly interest rate = 6.50/12 = 0.54167%
Present value is calculated as
Present value
![= (monthly payment)/((1 + monthly rate)^n)](https://img.qammunity.org/2021/formulas/business/college/65a05159dszv5fectzfoxgj7dypn8l2rol.png)
Present value
![= (2500)/((1 + 0.54167\%)^1) +(2500)/((1 + 0.54167\%)^2) +........ + (2500)/((1 + 0.54167\%)^(24)) + (3000)/((1 + 0.54167\%)^(25)) + ...... + (3000)/((1 + 0.54167\%)^(48))](https://img.qammunity.org/2021/formulas/business/college/t20mxm42mthpp25r8ms1uil6twaanl2xlb.png)
Present value
![= 2500* ((1-((1)/(1.0054167))^(24)))/(0.0054167) + 3000* ((1-((1)/(1.0054167))^(24)))/(0.0054167)](https://img.qammunity.org/2021/formulas/business/college/ta113fflmwc6tusn84ipjrzwzuxw7as4bl.png)
Present value = $115,278.17