Question: Your friend has agreed to give you an interest free loan of $5,000 in 2 years time for a down payment on a car. Using

Your friend has agreed to give you an interest free loan of $5,000 in 2 years time for a down payment on a car. Using an annual interest rate of 2.75% what is the present value of the loan?

$4,736

$4,449

$5,279

$4,262

None of the options listed

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