Answer:
The present value is $5,435.76
Explanation:
The computation of the present value is shown below:
= [Deposit made in year 1 ÷ (1 + rate of interest)^time period + [deposit made at the end of year 3 ÷ (1 + rate of interest)^time period
= [$3,500 ÷ (1 + 0.10)^1] + [$3,000 ÷ (1 + 0.10)^3]
= $3,181.82 + $2,253.94
= $5,435.76
Hence, the present value is $5,435.76
we simply applied the above formula
And, the same is to be considered
