If
r = 6% = 0.06 is the annual rate and n= 3 is the number of years,
then A = P·(1
+ r)^{n}
and the present value is P = A/(1 + r)^{n}
= 3500 / (1.06)^{3}
= $2938.67.

Apr 15th, 2015

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