Answer:
present value = $8396.19
Explanation:
given data
cash flow = $10,000
rate r = 6 %
time period t = 3 years
to find out
present value of the note
solution
we get here present value that is expressed as
present value = [tex]\frac{cash\ flow}{(1+r)^t}[/tex] ....................1
put here value and we will get present value
present value = [tex]\frac{10000}{(1+0.06)^3}[/tex]
solve it we get
present value = $8396.19
