1. The present value of $40,000 to be received in one year, at 6% compounded annually, is (rounded to nearest dollar)

$37,736

$42,400

$40,000

$2,400

2. The present value of $30,000 to be received in two years, at 12% compounded annually, is (recorded to nearest dollar)

$37,736

$37,632

$23,700

$30,700