Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 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 provided, the present value of $57,000 (rounded to the nearest dollar) to be received 3 years from today, assuming an earnings rate of 6%, is a.$71,501 b.$152,361 c.$47,880 d.$57,000
Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 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 provided, the present value of $57,000 (rounded to the nearest dollar) to be received 3 years from today, assuming an earnings rate of 6%, is a.$71,501 b.$152,361 c.$47,880 d.$57,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Following is a table for the
| Year | 6% | 10% | 12% | ||
| 1 | 0.943 | 0.909 | 0.893 | ||
| 2 | 0.890 | 0.826 | 0.797 | ||
| 3 | 0.840 | 0.751 | 0.712 | ||
| 4 | 0.792 | 0.683 | 0.636 | ||
| 5 | 0.747 | 0.621 | 0.567 |
Following is a table for the present value of an
| Year | 6% | 10% | 12% | ||
| 1 | 0.943 | 0.909 | 0.893 | ||
| 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 provided, the present value of $57,000 (rounded to the nearest dollar) to be received 3 years from today, assuming an earnings rate of 6%, is
a.$71,501
b.$152,361
c.$47,880
d.$57,000
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