____is based on the notion that a dollar paid in the future is less valuable than a dollar paid today.

The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 2% is $_____ . (Round your response to the neareast two decimalplace)

If a loan is paid after twoyears, and the amount $7000 is to be paid then with a corresponding 4% interestrate, the present value of the loan is $______

. (Round your response to the neareast two decimalplace)