To what present value would $20,000 received in five years, assuming an annual discount rate of 5%?

______2. Benefits received in the future are adjusted to their present value (discounted) because:

1. they are uncertain.
2. the future may never come, or may come under unforeseen circumstances.
3. markets indicate that people need to be compensated for postponing the enjoyment of benefits
4. None of the above is true.