A debt of $$ 4703.79$ is due November 1, 2023. What is the value of the obligation on May 1,2016 , if money is worth 8 \% $c o m p o u n d e d a n n u a l l y ? T h e v a l u e o f t h e o b l i g a t i o n i s$ $$
(Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

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$$ 2640.66$ is the value of the obligation on May 1, 2016.

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Step 1 ：We are given a future value (FV) of $4703.79, an annual interest rate (r) of 8% or 0.08 in decimal form, the interest is compounded annually so n is 1, and the time (t) is the number of years from May 1, 2016 to November 1, 2023 which is approximately 7.5 years.

Step 2 ：We can use the formula for present value (PV) which is: $P V = \frac{F V}{(1 + \frac{r}{n})^{n t}}$

Step 3 ：Substituting the given values into the formula, we get: $P V = \frac{4703.79}{(1 + \frac{0.08}{1})^{1 * 7.5}}$

Step 4 ：Solving the equation, we find that the present value (PV) is approximately $2640.66

Step 5 ： $$ 2640.66$ is the value of the obligation on May 1, 2016.

A debt of $4703.79 is due November 1, 2023. What is the value of the obligation on May 1,2016 , if money is worth 8 \%compoundedannually?Thevalueoftheobligationis$$(Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

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