The present value of the amount given can be found as follows; A=p(1+r/100)^n A=amount=$5000 p=principle=? r=6% n=4 years thus to calculate for p we we substitute the values in our formula; 5000=p(1+6/100)^4 5000=p(1.06)^4 hence; p=5000/(1.06)^4 p=3,960.50 The answer is false
