Question 1127157
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I'm assuming you're compounding the interest once per year.


The formula to use is
PV = FV/((1+r)^n)
where,
PV = present value = unknown
FV = future value = 34,000
r = 0.04 which is the decimal form of 4%
n = number of years = 4


So,
PV = FV/((1+r)^n)
PV = (34,000)/((1+0.04)^4)
PV = (34,000)/((1.04)^4)
PV = (34,000)/(1.16985856)
PV = 29,063.3424950107
<font color=red>PV = 29,063.34 dollars</font>
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