nswer : the investment worth in today’s terms = $ 2249.318

Working notes for the above answer is as under

interest rate is 9% per year

$750 one year from now,

$800 two years from now,

$450 in 3 years,

$350in 4 years,

$450 in 5 years

We will find prasent value for the above figure as under

PV = FV/(1+i)^N

PV = 750/(1+0.09)¹

= 750/1.09

= 688.0734

PV = 800/(1+0.09)2

= 800/1.1881

= 673.344

PV = 450/(1+0.09)³

= 450/1.2950

= 347.48

PV = 350/(1+0.09)4

= 350/1.4116

= 247.94

PV = 450/(1+0.09)⁵

= 450/1.4386

= 292.46

Total prasent value for five years are as follow