Question 1188386
present value year is the beginning of 1998.


investment at the beginning of 2001 will be divided by 1.06 ^ (2001 - 1998) = 1.06 ^ 3.


that would be 7800 / 1.06 ^ 3 = 6549.030408.


investment at the beginning of 2005 will be divided by 1.06 ^ (2005 - 1998) = 1.06 ^ 7.


that would be 3800 / 1.06 ^ 7 = 2527.217032.


the present value is equal to 6549.030408 + 2527.217032 = 9076.247439.


that's your solution.


here's what it looks like in excel.


<img src = "http://theo.x10hosting.com/2021/120304.jpg" .