Answer:
$202,137.90
Explanation:
Year Annual payment Discount factor Present value
1 $28,000 0.965250965 $27,027.03
2 $32,000 0.931709426 $29,814.70
3 $66,000 0.899333423 $59,356.01
4 $99,000 0.868082454 $85,940.16
Total present value $202,137.90
The discount factor should be computed by
= 1 ÷ (1 + interest rate)^years
where,
rate is 3.6%
Year = 0,1,2,3,4 and so on
