Compute the Present Value of $3,000 Paid in Four Years

Multiple Choice

Compute the present value of $3,000 paid in four years using the following discount rates: 3 percent in year 1, 4 percent in year 2, 5 percent in year 3, and 6 percent in year 4.

A) $1,998.73
B) $2,109.14
C) $2,491.28
D) $2,516.26