Present value of amounts due Tommy John is going to receive $960,000 in three years. The current market rate of interest is 12%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, at input your answers in the questions below. Open spreadsheet a. Determine the present value of this amount compounded annually. If required, round factor values to 5 decimal places. Round your final answer to the nearest whole dollar. 683,328 X b. Why is the present value less than the $960,000 to be received in the future? The present value is less due to the compounding of interest over the 3 years. Foodback Check My Work Previous Next >