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55. The following items apply to the appropriate use of present value tables. Given below are the present value factors for $1.00 discounted at 10%
55. The following items apply to the appropriate use of present value tables. Given below are the present value factors for $1.00 discounted at 10% for one to five periods. Each of the items is based on 10% interest compounded annually. Present Value of $1 Periods Discounted at 10% per Period 1 0.909 2 0.826 3 0.751 4 0.683 5 0.621 If an individual put $4,000 in a savings account today, what amount of cash would be available two years from today? A) $4,000 x 0.826 x 2 B) $4,000 / 0.826 C) $4,000 x 0.826 D) $4,000 / 0.909 x 2
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