You are depositing an amount today that earns $2\mathrm{.}5\%$ interest, compounded annually, and your goal is to have $$5,000$ in $5$ years. How much must you deposit today to your account?

Present value $($PV$)=$future value$/(1+$ interest rate$)$# of periods

In this case, the number of periods is the number of years.

Question $2$ options:

a$)$

PV $=$ $$4,207$

b$)$

PV $=$ $$4,419$

c$)$

PV $=$ $$4,326$

d$)$

PV $=$ $$4,359$