Formula 1 point What is the present value of a cash flow of $$ \$ 9,000 $$ that you expect to occur eactly 8 years from today? The discount rate is $$ 8 \% $$. Round your answer to the nearest penink Type your answer_

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To calculate the present value (PV) of a cash flow of \$9,000 expected to occur 8 years from today with an annual discount rate of 8%, you can use the **Present Value Formula**:

$$
PV = \frac{FV}{(1 + r)^n}
$$

Where:
- $$ PV $$ = Present Value
- $$ FV $$ = Future Value (\$9,000)
- $$ r $$ = Discount rate (8% or 0.08)
- $$ n $$ = Number of years (8)

**Step-by-Step Calculation:**

1. **Calculate $$ (1 + r)^n $$:**
   $$
   (1 + 0.08)^8 = 1.85093
   $$

2. **Divide the Future Value by this factor:**
   $$
   PV = \frac{9000}{1.85093} \approx 4865.59
   $$

**Rounded to the nearest penny:**

$$
PV \approx \$4,865.59
$$

**Answer:**  
\$4,865.59
The present value is \$4,865.59.

Formula 1 point What is the present value of a cash flow of \( \$ 9,000 \) that you expect to occur eactly 8 years from today? The discount rate is \( 8 \% \). Round your answer to the nearest penink Type your answer_

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