• Write out each step you used to solve the problem and provide the solution to the problem as well.
  • Present your final solution as a decimal approximation carried out to the second decimal point (e.g., $000.00).
• Explain the meaning of the problem and your solution.
• Explain your answers to the following questions:
  • If the rate in the problem was higher, would the solution be higher or lower?
  • If the time period in the problem was shorter, would the solution be higher or lower?
• Describe an element of this problem that was challenging to you.
• Ask at least one question about the time value of money mathematics.

Problem	Equation
Compute the present value of $ 5,000 received in 6 years, using a discount rate of 2 %	Equation 4.14: PV 0 = FV n X (1 + r) - n also expressed as :

References:

https://content.bridgepointeducation.com/curriculum/file/f1276943-d969-4c05-a051-12e5a988495a/1/Solving%20Time%20Value%20Money%20Problems%20using%20Google%20Calculator.pdf

Hickman, K. A., Byrd, J. W., & McPherson, M. (2013).Essentials of finance. Bridgepoint Education.