Present value Susie bets you $1,000 that she can run a mile in 5 min. You obviously don’t believe her, so you agree to take on the bet. However, at the last minute, she informs you that she doesn’t have the money right now, but promises to pay you in 6 months, when her student loans come in. If the APR is 10 %, compounded quarterly, how much would your winnings actually be worth now should you win the bet?