Answer
$\$ 2927.15$
Work Step by Step
The present value (the amount you pay now) $\\$
of an investment earning interest at$\\\\$
an annual rate of r$=5.5\%=0.055 \\$
compounded m$=1$ times per year $\\$
for a period of t$=10$ years,$\\$
with future (maturity) value FV$=5,000$ is$\\\\$
$ PV=\displaystyle \frac{FV}{(1+\frac{r}{m})^{mt}}=\frac{5000}{(1+\frac{0.055}{1})^{1(10)}}\approx$2927.15289714$\\\\$
rounded to the nearest cent: $PV=\$ 2927.15$
