business math
posted by Jackie on .
If the interest rate is 3% and a total of $4,370.91 will be paid to you at the end of 3 year, what is the present value of that sum.

We do not know if it is simple or compound interest. Since compounding frequency is not mentioned, we assume it is simple interest.
The simple interest formula:
Future value = present value(1+ni)
n=number of years,
i=annual interest
So
4,370.91 =PV(1+3*0.03)
=>
PV=4,370.91/(1.09)
=$4010