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

Part 2 The present value of a loan in which $5000 is to be paid out a year from today with the interest rate equal to 4 % is $_____enter your response here . (Round your response to the nearest two decimal place)

Part 3 If a loan is paid after two years, and the amount $1000 is to be paid then with a corresponding 3 % interest rate, the present value of the loan is $_____enter your response here . (Round your response to the nearest two decimal place)