Present Value

Question

suppose your bank account will be worth $7000 in one year. The interest rate (discount rate) that the bank pays is 8%. What is the present value of your bank account today? What would the present value of the account be if the discount rate is only 3%

Answer 1

For the first part of your question,let X be the present value. Then solve
1.08X = 7000
for X

For the second part, solve
1.03X = 7000