Answer:
The Present Value (PV) of the car is $13,614
Explanation:
Computing the Present Value of the car using the excel formula of Present Value which is as:
=PV(rate,nper,PMT,fv,type)
where
rate is 9%
nper is number of years is 5
PMT is annual payments which is of -$3,500
FV is Future value which is not given
Type is 0
Putting the values above:
=PV(9%,5,-3500,0)
= $13,613.78 or $13,614
Therefore, the present value of the car amounts to $13,614
