Assuming an interest rate of

14%,

the present value of

$30,000

to be received

8

years from now would be closest to:

Present Value of $1

Periods	8%	10%	12%	14%
5	0.681	0.621	0.567	0.519
6	0.630	0.564	0.507	0.456
7	0.583	0.513	0.452	0.400
8	0.540	0.467	0.404	0.351
9	0.500	0.424	0.361	0.308
10	0.463	0.386	0.322	0.270

Present Value of Annuity of $1

Periods	8%	10%	12%	14%
5	3.993	3.791	3.605	3.433
6	4.623	4.355	4.111	3.889
7	5.206	4.868	4.564	4.288
8	5.747	5.335	4.968	4.639
9	6.247	5.759	5.328	4.946
10	6.710	6.145	5.650	5.216

Question content area bottom

Part 1

A.

$10,530

B.

$30,000

C.

$139,170

D.

$33,600