If you promise to leave $35,000 on deposit at the Dime Savings Bank for 4 years, the

Question:

If you promise to leave $35,000 on deposit at the Dime Savings Bank for 4 years, the bank will give you a new large, flat-screen Sony TV today and your $35,000 back at the end of 4 years. How much are you paying today for the TV, in effect, if the bank pays other customers 8% interest compounded quarterly (2% paid 4 times per year)?
Required:
Using and present value techniques, including perpetuities to solve a variety of realistic problems, we give no hints as to the specific calculation with the problems.

Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...