Posted by **Jackie** on Sunday, June 23, 2013 at 9:23am.

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.

- business math -
**MathMate**, Sunday, June 23, 2013 at 10:15am
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

## Answer this Question

## Related Questions

- Business Math and Statistics - If the interest rate is 3% and a total of $4,370....
- Statistics - If the interest rate is 3% and a total of $4,370.91 will be paid to...
- Quantitative reasoning for business - What is the present value of nine annual ...
- math - find the present value of ordinary annuity payments of 890 each year for ...
- Actuarial Math - The sum of the accumulated value of 1 at the end of four years ...
- Finance - If $12,000 is invested in a certain business at the start of the year...
- Finance - what is the present value of 1000 paid at the end of each of the next ...
- Finance - what is the present value of $1,000 paid at the end of the next 100 ...
- corporate finance - What is the present value of $1000 paid at the end of each ...
- fin - 1. A financial institution has the following market value balance sheet ...

More Related Questions