Following is a table for the present value of $1 at compound interest:Year6%10%12%10.9430.9090.89320.8900.8260.79730.8400.7510.71240.7920.6830.63650.7470.6210.567Following is a table for the present value of an annuity of $1 at compound interest:Year6%10%12%10.9430.9090.89321.8331.7361.69032.6732.4872.40243.4653.1703.03754.2123.7913.605Using the tables provided, the present value of $6,000 to be received at the end of each of the next 4 years, assuming an earnings rate of 10%, is a.$14,412 b.$19,020 c.$25,272 d.$20,790

Present value is referred to as what will be the current value of the future money. The future cash…

Answered: Using the tables provided, 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 $6,000 to be received at the end of each of the next 4 years, assuming an earnings rate of 10%, is

a.
$14,412

b.
$19,020

c.
$25,272

d.
$20,790

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