Determine the present value now of an investment of $3,000 made one one year from now and an additional $3,000 made two years from now if the annual discount rate is 4 percent.

Answer 1

PV = 3000(.96) + 3000(.96)^2

or

PV = 3000(1/04)^-1 + 3000(1.04)^-2

depending on how "annual discount rate" is defined in your course.

btw, they yield different results.