Following is a table for the present value of $1 at compound interest:Year6% 10% 12%10.943 0.909 0.893 20.890 0.826 0.797 30.840 0.751 0.712 40.792 0.683 0.636 50.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest:Year6% 10% 12%10.943 0.909 0.893 21.833 1.736 1.690 32.673 2.487 2.402 43.465 3.170 3.037 54.212 3.791 3.605 Using the tables provided, the present value of $19,778 (rounded to the nearest dollar) to be received 4 years from today, assuming an earnings rate of 10%, isa.$19,778b.$13,508c.$15,664d.$62,696

Present value refers to the amount present today of an asset based on some future date. The money…

Answered: Following is a table for the present…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Following is a table for the present value of $1 at compound interest:

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 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 $19,778 (rounded to the nearest dollar) to be received 4 years from today, assuming an earnings rate of 10%, is

a.$19,778

b.$13,508

c.$15,664

d.$62,696

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