Which one of the following is the correct application of the present value formula for this problem: Maria expects to receive $$5,000$ from her grandmother upon her graduation in three years. What is the current value of this gift if the interest rate is $4$ percent?

$$5,000=F\frac{V}{(1+0\mathrm{.}04{)}^3}$

$PV=$$$5,\frac{000}{(1+0\mathrm{.}03{)}^4}$

$$5,000=F\frac{V}{(1+0\mathrm{.}03{)}^4}$

$PV=$$$5,\frac{000}{(1+0\mathrm{.}04{)}^3}$

Twelve years ago, you invested $$4,800.$ Today, your investment is worth $$8,750.$ What is your rate of return?

$5\mathrm{.}42$ percent

$13\mathrm{.}45$ percent

$5\mathrm{.}13$ percent

$4\mathrm{.}87$ percent