Answer:
PV= $3,528.81
Step-by-step explanation:
Giving the following information:
Future value= $5,000
Interest rate= 3.5% compounded quarterly
Number of periods= 10 years
First, we need to determine the quarterly interest rate and the number of periods:
i= 0.035/4= 0.00875
n=10*4= 40
Now, using the following formula, we can calculate the present value:
PV= FV/(1+i)^n
PV= 5,000/(1.00875^40)
PV= $3,528.81