if the interest rate is 3% and a total of $4,370.91 will be paid to you at the end of 3 years, what is the present value of that sum? a. 3,900.00 b. 3,947.00 c. 3,977.40 d. 4,000.00
The formula is A=p (1+r)^t A future value 4370.91 P present value? R interest rate 0.03 T 3years We need to solve for p P=A÷(1+r)^t P=4,370.91÷(1+0.03)^(3) P=4,000.00
