Answer:
X = 789.70
Explanation:
we solve for X considerign each deposit is discounted at the given rate using the lump sum formula:
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
[tex]\frac{400}{1.06}+\frac{X}{1.06^2} +\frac{500}{1.06^3} = 1,500\\X= (1,500 - \frac{400}{1.06} - \frac{500}{1.06^3}) \times 1.06^2[/tex]
X = 789.7018868
