To solve this problem, we will use the present value formula:

$PV = \frac{FV}{(1 + i)^n}$

where:

• $FV = 10,752.34$ (the future value),
• $i = 0.033$ (3.3% annual interest rate),
• $n = 5$ years (since it's compounded annually, $n$ is 5).

Now, let's plug in the values into the formula:

$PV = \frac{10,752.34}{(1 + 0.033)^5}$

Step-by-step calculation:

1. Calculate $1 + 0.033 = 1.033$.
2. Raise 1.033 to the power of 5:

$1.033^5 = 1.175276$

3. Divide the future value by this result:

$PV = \frac{10,752.34}{1.175276} \approx 9149.41$

So, the present value is approximately $9,149.41.

Would you like further details or have any questions?

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Here are 5 related questions you might find helpful:

1. How does the compounding frequency affect the present value calculation?
2. What would be the present value if the interest rate increased to 5%?
3. How do we calculate present value for continuous compounding?
4. What happens to the present value if the future value increases?
5. How does the time period (n) impact the present value?

Tip: The more frequent the compounding, the lower the present value will be for the same future amount.