Question

please help. i get two diff ans.
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) $3900, B) $3947 C) $3,977.40 D) $4000

Answer 1

PLEASE HELP!

Answer 2

You want to know the amount you started with so the formula is:
Principal = Total ÷ (1 + Rate)^years
Principal = 4,370.91 ÷ (1.03)^3
Principal = 4,370.91 ÷ 1.092727
Principal = $4,000.00

Calculator to test your answer http://www.1728.org/compint.htm

Answer 3

that is exactly what i did and got $4000, but when i tried to check my answer, by google, i got $3900. i got $4000 four diff times. THANK U SO MUCH!

Answer 4

u r welcome

Answer 5

u get a medal

Answer 6

thanks for the website.