Answer:
$1876.31
Step-by-step explanation:
The present value can be found using the compound interest formula.
Present value
The formula for the future value of an investment of P earning annual interest rate r compounded n times per year for t years is ...
FV = P(1 +r/n)^(nt)
Filling in the known values gives ...
4000 = P(1 +0.085/4)^(4·9) = P(1.02125^36)
Then the amount to be invested is ...
P = 4000/1.02125^36 ≈ 1876.31
The present value is $1876.31.
