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16 October, 17:18

If the interest rate is 3% and a total of $4,370.91 will be paid to you at the end of 3 years, what is the present value of that sum?

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  1. 16 October, 21:15
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    You want to know the amount you started with so the formula is: Principal = Total : (1 + Rate) ^years Principal = 4,370.91 : (1.03) ^3 Principal = 4,370.91 : 1.092727 Principal = $4,000.00
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