What single investment made today, earning 8% annual interest, will be worth $4, 300 at the end of 5 years?
What is the present value of $4, 300 to be received at the end of 5 years if the discount rate is 8%?
What is the most you would pay today for a promise to repay you $4, 300 at the end of 5 years if your opportunity cost is 8%?
Compare, contrast, and discuss your findings in part a through c.