The most you would pay today for a promise to repay you 4100 at the end of 10 years if your opportunity cost is 98% is ?
Your question is worded strangely for a simple financial problem!!. What does "opportunity cost of 98%" mean? What you want is the PV that will pay you $4,100 in 10 years. The only thing that you want is the interest rate at which the $4,100 will be discounted. You should state it clearly. You cannot discount the $4,100 @ 98%, because the PV will be a negative amount!!.
