Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 0.943 0.909 0.893 0.890 0.826 0.797 0.840 0.751 0.712 0.792 0.683 0.636 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 0.943 0.909 1.833 1.736 2.673 2.487 3.465 3.170 4.212 3.791 1 2 3 4 5 1 2 3 4 5 12% 0.893 1.690 2.402 3.037 3.605 Using the tables provided, the present value of $8,755 (rounded to the nearest dollar) to be received at the end of each of the next 4 years, assuming an earnings rate of 12%, is O a a. $21,030 O b. $8,755 O c. $26,589 Od. $31,562
Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 0.943 0.909 0.893 0.890 0.826 0.797 0.840 0.751 0.712 0.792 0.683 0.636 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 0.943 0.909 1.833 1.736 2.673 2.487 3.465 3.170 4.212 3.791 1 2 3 4 5 1 2 3 4 5 12% 0.893 1.690 2.402 3.037 3.605 Using the tables provided, the present value of $8,755 (rounded to the nearest dollar) to be received at the end of each of the next 4 years, assuming an earnings rate of 12%, is O a a. $21,030 O b. $8,755 O c. $26,589 Od. $31,562
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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Transcribed Image Text:Following is a table for the present value of $1 at compound interest:
12%
0.893
0.797
Year
1
2
3
4
5
0.890
0.840
0.712
0.792
0.636
0.747
0.567
Following is a table for the present value of an annuity of $1 at compound interest:
Year
10%
12%
1
0.909
1.736
2
3
4
6%
0.943
5
6%
10%
0.909
0.826
0.751
0.683
0.621
0.943
1.833
2.673
3.465
4.212
0.893
1.690
2.487
2.402
3.170 3.037
3.791
3.605
Using the tables provided, the present value of $8,755 (rounded to the nearest dollar) to be received at the end of each of the next 4 years, assuming an earnings rate of 12%, is
O a. $21,030
O b. $8,755
O c. $26,589
Od. $31,562
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