You will receive $4,500 three years from now. The discount rate is 13 percent. a. What...

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You will receive $4,500 three years from now. The discount rate is 13 percent. a. What...

You will receive $4,500 three years from now. The discount rate is 13 percent.

a. What is the value of your investment two years from now? Multiply $4,500 × .885 (one year’s discount rate at 13 percent). (Round your answer to 2 decimal places.)

b. What is the value of your investment one year from now? Multiply your rounded answer to part a by .885 (one year’s discount rate at 13 percent). (Round your answer to 2 decimal places.)

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