Answer:
The security worth $5,615 today
Explanation:
Amount of Security = $6,750
Annual rate of return = 3.75%
number of years = 5 years
Future value = Present Value x ( 1 + rate of return )^number of years
Present Value = Future value / ( 1 + rate of return )^number of year
Present Value = $6,750 / ( 1 + 3.75% )^5
Present Value = $6,750 / ( 1 + 0.0375 )^5
Present Value = $6,750 / ( 1.0375 )^5
Present Value = $6,750 / 1.2021
Present Value = $5,615.17
Present Value of security is $5,615
