Present Value Compute the present value of a $2,000 deposit in year 1 and another $1,500 deposit at the end of year 3 if interest rates are 10 percent. Solution CALCULATION OF PRESENT VALUE : _______________________________________________________________ YEAR                    DEPOSIT            PVF @ 10%              PRESENT VALUE ________________________________________________________________ 1                            $ 2,000                0.909                           1818.00 3                            $ 1500                 0.751                            1126.50_________ Total Present Value                                                                2944.50_________ .