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 quarterly? Formula: P⁢V=(F⁢V)/((1+(r)/(n))^n⋅t)

Quarterly compounding means there are 4 periods per year, so 4 years gives 4 × 4 = 16 periods. Substitute into the formula: PV = 5,000 ÷ (1 + 0.03/4)^16 ≈ $4,436.59. Therefore, the present value is choice B, $4,436.59.

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