Answered: What is the present value of $39,000 to…

What is the present value of $39,000 to be received at the end of each of 20 periods, discounted at 3% compound interest? (Round answer to O decimal places, e.g. 458,581.)

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

Click here to view the factor table.

https://education.wiley.com/content/Kieso_Intermediate_Accounting_17e/media/simulations/interest_rate_tables.pdf

What is the present value of $39,000 to be received at the end of each of 20 periods, discounted at 3% compound interest? (Round
answer to O decimal places, e.g. 458,581.)
Present value
$
%24

Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.) (For calculation
purposes, use 5 decimal places as displayed in the factor table provided.)
Click here to view the factor table.

Expert Solution

Introduction

A financial calculation called present value, also known as discounted value, determines the value of a future quantity of money or stream of payments in today's dollars, adjusted for interest and inflation. To put it another way, it compares the purchasing power of a future dollar to the purchasing power of a dollar today.

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