Answer:
$4,118
Explanation:
The computation of the present value is shown below:
Present value is
= Payment made every year ÷ rate of interest
= $280 ÷ 6.80%
= $4,118
Hence, the present value is $4,118 and the same is to be considered
We simply divide the payment made every year from the rate of interest so that the present value could come
