Following is a table for the present value of $1 at compound interest:Year 6%10%0.9430.9090.8900.8260.8400.7510.7920.6830.7470.621Following is a table for the present value of an annuity of $1 at compound interest:Year 6%10%12%10.9430.9090.89321.8331.7361.6902.6732.4872.40243.4653.1703.03754.2123.7913.605Using the tables provided, the present value of $14,544 (rounded to the nearest dollar) to be received 4 years from today, assuming an earnings rate of 10%, isOa. $14,544Ob. $11,519Oc. $9,934Od. $46,10412345312%0.8930.7970.7120.6360.567

Time value of money :— According to this concept, value of money in present day is greater than the…

is a table for the present value of $1 at compound interest: 6% 10% 0.943 0.909 0.890 0.826 0.840 0.751 4 0.792 0.683 5 0.747 0.621 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 1 0.943 0.909 2 1.833 1.736 3 2.673 2.487 3.465 3.170 4.212 3.791 Year 1 2 3 12% 0.893 1.690 2.402 3.037 3.605 Using the tables provided, the present value of $14,544 (rounded to the nearest dollar) to be received 4 years from today, assuming an earnings rate of 10%, is Oa. $14,544 Ob. $11,519 Oc. $9,934 Od. $46,104 4 12% 0.893 0.797 0.712 0.636 0.567 5

is a table for the present value of $1 at compound interest: 6% 10% 0.943 0.909 0.890 0.826 0.840 0.751 4 0.792 0.683 5 0.747 0.621 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 1 0.943 0.909 2 1.833 1.736 3 2.673 2.487 3.465 3.170 4.212 3.791 Year 1 2 3 12% 0.893 1.690 2.402 3.037 3.605 Using the tables provided, the present value of $14,544 (rounded to the nearest dollar) to be received 4 years from today, assuming an earnings rate of 10%, is Oa. $14,544 Ob. $11,519 Oc. $9,934 Od. $46,104 4 12% 0.893 0.797 0.712 0.636 0.567 5

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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