Answer:
the present value is $7,669.294
Step-by-step explanation:
The computation of the present value is shown below:
As we know that
A = Present value × e^(rate × time period)
$9,000 = Present value × e^(0.04 × 4)
Present value = $9,000 ÷ e^0.16
= $9,000 ÷ 1.1735
= $7,669.294
Hence, the present value is $7,669.294
We simply applied the above formula so that the correct value could come
And, the same is to be considered