Below is a table for the present value of $1 at Compound interest. Year6%10%12%
ID: 2575686 • Letter: B
Question
Below is a table for the present value of $1 at Compound interest.
Year6%10%12%
10.9430.9090.893
20.8900.8260.797
30.8400.7510.712
40.7920.6830.636
50.7470.6210.567
Below is a table for the present value of an annuity of $1 at compound interest.
Year6%10%12%
10.9430.9090.893
21.8331.7361.690
32.6732.4872.402
43.4653.1703.037
54.2123.7913.605
Using the tables above, what would be the present value of $16,228 (rounded to the nearest dollar) to be received 4 years from today, assuming an earnings rate of 10%?
$51,443
$16,228
$12,853
$11,084
Explanation / Answer
D.$11,084.
Present value of $16,228 = $16,228* PV factor for 4 years at 10%.....(find the value from the present value of $1 at compound interest).
=>$16,228 * 0.6830
=>$11,083.724
=>$11,084.......(rounded off).
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