10. Compute the present value of $3,000 paid in four years using the following discount rates: 3 percent in year 1, 4 percent in year 2, 5 percent in year 3, and 6 percent in year 4.

To compute the present value of $3,000 paid in four years using different discount rates, we need to discount each future cash flow back to present value using the corresponding discount rate for each year. Here's how you can do it:

1. Calculate the present value of $3,000 in year 4 using a discount rate of 6 percent. The formula to calculate present value is:
PV = FV / (1 + r)^n
where PV is the present value, FV is the future value, r is the discount rate, and n is the number of periods.

Plugging in the numbers:
PV = 3,000 / (1 + 0.06)^4
PV = 3,000 / (1.06)^4
PV ≈ 2,419.68

So, the present value of $3,000 in year 4 is approximately $2,419.68.

2. Repeat the above steps for each year using the given discount rates for years 1, 2, and 3:

- Year 3: PV = 3,000 / (1 + 0.05)^3 ≈ $2,492.61
- Year 2: PV = 3,000 / (1 + 0.04)^2 ≈ $2,772.80
- Year 1: PV = 3,000 / (1 + 0.03)^1 ≈ $2,912.62

3. Finally, sum up the present values for each year to find the total present value:
Total Present Value = PV(year 4) + PV(year 3) + PV(year 2) + PV(year 1)
Total Present Value ≈ $2,419.68 + $2,492.61 + $2,772.80 + $2,912.62
Total Present Value ≈ $10,597.71

Therefore, the present value of $3,000 paid in four years using the given discount rates is approximately $10,597.71.