The following table is for the present value of $1 at compound interest.Year123456%Year123450.9430.8900.8400.7920.747The following table is for the present value of an annuity of $1 at compound interest.6%0.9431.8332.67310%0.9090.8260.7510.6830.6213.4654.21212%0.8930.7970.7120.6360.56710%0.9091.7362.4873.1703.79112%0.8931.6902.4023.0373.605Using these tables, what would be the present value of $15,000 (rounded to the nearest dollar) to be received 3 years from today, assuming an earnings rate of 6%?

By evaluating the worth of money at different periods in time, present value calculations are a key…

Answered: Using these tables, what would be the…

Using these tables, what would be the present value of $15,000 (rounded to the nearest dollar) to be received 3 years from today, assuming an earnings rate of 6%?

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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Question

The following table is for the present value of $1 at compound interest.
Year
1
2
3
4
5
6%
Year
1
2
3
4
5
0.943
0.890
0.840
0.792
0.747
The following table is for the present value of an annuity of $1 at compound interest.
6%
0.943
1.833
2.673
10%
0.909
0.826
0.751
0.683
0.621
3.465
4.212
12%
0.893
0.797
0.712
0.636
0.567
10%
0.909
1.736
2.487
3.170
3.791
12%
0.893
1.690
2.402
3.037
3.605
Using these tables, what would be the present value of $15,000 (rounded to the nearest dollar) to be received 3 years from today, assuming an earnings rate of 6%?

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