Answer:
$4,713
Explanation:
The formula and computation of the present value are shown below:
= Future value ÷ (1 + rate)^number of years
= $38,000 ÷ (1 + 0.11)^20
= $4,713
This (1 + rate)^number of years is also known as the discount factor which helps to calculate the amount of the present value
We simply apply the above formula so that the accurate value can come
