What is the present value of an investment that promises to pay $⁢5,000 in 4 years at an annual interest rate of 3% compounded semiannually? Formula: P⁢V=(F⁢V)/((1+(r)/(n))^n⋅t)

With semiannual compounding, the rate per period is 0.03 ÷ 2 = 0.015, and there are 2 × 4 = 8 periods. Substitute into the formula: PV = 5,000 ÷ (1.015)^8 ≈ $4,438.56. Therefore, the present value is choice B, $4,438.56.

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