The present value of $41,000 to be received in two years, at 12% compounded annually, is _____ (rounded to nearest dollar). Use the following table, if needed. Present Value of $1 at Compound Interest
The present value of $41,000 to be received in two years, at 12% compounded annually, is _____ (rounded to nearest dollar). Use the following table, if needed. Present Value of $1 at Compound Interest
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The present value of $41,000 to be received in two years, at 12% compounded annually, is _____ (rounded to nearest dollar). Use the following table, if needed.
Present Value of $1 at Compound Interest
| Periods | 5% | 6% | 7% | 10% | 12% |
| 1 | 0.95238 | 0.94340 | 0.93458 | 0.90909 | 0.89286 |
| 2 | 0.90703 | 0.89000 | 0.87344 | 0.82645 | 0.79719 |
| 3 | 0.86384 | 0.83962 | 0.81630 | 0.75132 | 0.71178 |
| 4 | 0.82270 | 0.79209 | 0.76290 | 0.68301 | 0.63552 |
| 5 | 0.78353 | 0.74726 | 0.71299 | 0.62092 | 0.56743 |
| 6 | 0.74622 | 0.70496 | 0.66634 | 0.56447 | 0.50663 |
| 7 | 0.71068 | 0.66506 | 0.62275 | 0.51316 | 0.45235 |
| 8 | 0.67684 | 0.62741 | 0.58201 | 0.46651 | 0.40388 |
| 9 | 0.64461 | 0.59190 | 0.54393 | 0.42410 | 0.36061 |
| 10 | 0.61391 | 0.55840 | 0.50835 | 0.38554 | 0.32197 |
a.$36,490
b.$32,685
c.$35,811
d.$33,884
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