If $4,000 is to be paid now. What amount would be equivalent 97 days earlier given an interest rate of 4.25% per year?

A) $3,955.33
B) $3,844.22
C) $3,733.11
D) $3,622.00
E) $4,421.67

To find the equivalent amount 97 days earlier, we use the formula for calculating the present value: $PV=\frac{FV}{(1+r{)}^n}$ , where $PV$ is the present value, $FV$ is the future value ($4,000), $r$ is the interest rate per period (4.25% per year or 0.0425), and $n$ is the number of periods. Since the interest rate is annual, we convert 97 days into years by dividing by 365: $n=\frac{97}{365}$ . Plugging the values into the formula gives: $PV=\frac{4000}{(1+0.0425{)}^{\frac{97}{365}}}$ , which calculates to approximately $3,955.33.