Find the present value pv of the given investment. an investment earns 2% per year and is worth $40,000 after 8 years.

First use the formula of the future value of an annuity ordinary to find the yearly payments

Fv=pmt [ (1+r) ^ (n) - 1) : r]

Fv future value 40000

PMT yearly payment?

R interest rate 0.02

N time 8 years

Solve the formula for PMT

PMT=Fv:[ (1+r) ^ (n) - 1) : r]

PMT=40,000: (((1+0.02) ^ (8) - 1)

: (0.02))

=4,660.39

Now use the formula of the present value of an annuity ordinary to find the present value

Pv=pmt [ (1 - (1+r) ^ (-n)) : r]

PV present value?

PMT yearly payments 4660.39

R interest rate 0.02

N time 8 years

Pv=4,660.39 * ((1 - (1+0.02) ^ (-8)) : (0.02))

pv=34,139.60 ... answer