Below is a table for the present value of $1 at compound interest. Year 6% 10% 12% 1 .943 .909 .893 2 .890 .826 .797 3 .840 .751 .712 4 .792 .683 .636 5 .747 .621 .567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 .943 .909 .893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, what would be the present value of $15,000 (rounded to the nearest dollar) to be received three years from today, assuming an earnings rate of 6%? a.$12,600 b.$40,095 c.$14,145 d.$13,350
Below is a table for the present value of $1 at compound interest. Year 6% 10% 12% 1 .943 .909 .893 2 .890 .826 .797 3 .840 .751 .712 4 .792 .683 .636 5 .747 .621 .567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 .943 .909 .893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, what would be the present value of $15,000 (rounded to the nearest dollar) to be received three years from today, assuming an earnings rate of 6%? a.$12,600 b.$40,095 c.$14,145 d.$13,350
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Below is a table for the present value of $1 at compound interest.
Below is a table for the present value of an annuity of $1 at compound interest.
Using the tables above, what would be the present value of $15,000 (rounded to the nearest dollar) to be received three years from today, assuming an earnings rate of 6%?
| Year | 6% | 10% | 12% | |||
| 1 | .943 | .909 | .893 | |||
| 2 | .890 | .826 | .797 | |||
| 3 | .840 | .751 | .712 | |||
| 4 | .792 | .683 | .636 | |||
| 5 | .747 | .621 | .567 |
Below is a table for the present value of an annuity of $1 at compound interest.
| Year | 6% | 10% | 12% | |||
| 1 | .943 | .909 | .893 | |||
| 2 | 1.833 | 1.736 | 1.690 | |||
| 3 | 2.673 | 2.487 | 2.402 | |||
| 4 | 3.465 | 3.170 | 3.037 | |||
| 5 | 4.212 | 3.791 | 3.605 |
Using the tables above, what would be the present value of $15,000 (rounded to the nearest dollar) to be received three years from today, assuming an earnings rate of 6%?
a.$12,600
b.$40,095
c.$14,145
d.$13,350
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