Respuesta :
Calculating the present value of $3,000 paid in 4 years is:
$2,663.50
Step 1: Calculate the discount factor for each year.
Year 1: [tex]\frac{1}{(1+0.03)^{1} }[/tex] = 0.97087
Year 2: [tex]\frac{1}{(1+0.04)^{2} }[/tex] = 0.92455
Year 3: [tex]\frac{1}{(1+0.05)^{3} }[/tex] = 0.86383
Year 4: [tex]\frac{1}{(1+0.06)^{4} }[/tex]= 0.79209
Step 2: Multiply each discount factor by the cash flow for each year.
Year 1: 0.97087 x $3,000 = $2,912.61
Year 2: 0.92455 x $3,000 = $2,773.65
Year 3: 0.86383 x $3,000 = $2,591.49
Year 4: 0.79209 x $3,000 = $2,376.27
Step 3: Add all the present values of each year to get the total present value.
Present Value = $2,912.61 + $2,773.65 + $2,591.49 + $2,376.27
= $10,654.02
Step 4: Divide the total present value by the number of years to get the present value of the payment in four years.
Present Value = [tex]\frac{10654.02}{4}[/tex]
= $2,663.50
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