The rate of earnings is 6% and the cash to be received in 4
years is $82,603. The present value amount, using the following
partial table of present value of $1 at compound interest, is
(round to two decimal points)
a.$56,417.85
b.$52,535.51
c.$69,386.52
d.$65,421.58
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 |
b.$52,535.51
c.$69,386.52
d.$65,421.58