Answer:
$3,738.31
Explanation:
The present value of $4,000 at 7 % interest.
The formula for present value as below
PV = P × 1 −( 1 + r) ^ −n
r
Where Pv is present value
P is principal amount: $4000
r is interest rate: 7% or 0.07
N is number of periods: 1
Pv = $4000 x 1 - ( 1 + 0.07)^ -1
0.07
Pv = $4,000 x 1-(1.07)^-1
0.07
Pv = $4,000 x( 1 -0.9345794/0.07)
Pv =$4,000 x( 0.0654206/0.07)
Pv = $4,000 x 0.93458
Pv = $3,738.32
