An investor has asked for your help with the following time value of money applications. Table 6-4. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Required: a. What is the present value of $58,000 to be received in four years using a discount rate of 2%? (Round your answer to 1 decimal place.)

b. How much should be invested today at a return on investment of 2% compounded annually to have $58,000 in four years? (Round your answer to 1 decimal place.)

c. If the return on investment was greater than 2% compounded annually, would the amount to be invested today to have $58,000 in four years be more or less than the answer to part b?

multiple choice

• More

• Less