You are supporting the CFO of a multinational corporation. Due to a legal settlement, CFO must set aside $3 Million to a settlement in three years. The fund will need to be transferred offshore to a subsidiary in a form of loan and expecting to earn 6% interest per year. The CFO instructions to you:

"We lend the offshore subsidiary $x today with the loan balance due in three years plus accrued interest. No payment to us until the loan is matured, all interest to be accrued at 6% compounded annually. Please work out how much is the loan amount today so that we will have the $3 Million in three years time?" [Hint, another way to say this: what is the present value of $3 Million at 6% interest annual rate due in three years.]