Celine Moubayed:

1. Below is a table for the present value of $1 at Compound interest.

Year6%10%12%

10.9430.9090.893

20.8900.8260.797

30.8400.7510.712

40.7920.6830.636

50.7470.6210.567

Below is a table for the present value of an annuity of $1 at compound interest.

Year6%10%12%

10.9430.9090.893

21.8331.7361.690

32.6732.4872.402

43.4653.1703.037

54.2123.7913.605

Using the tables above, what would be the present value of $65,000 (rounded to the nearest dollar) to be received 3 years from today, assuming an earnings rate of 6%?

$81,536

$173,745

$54,600

$65,000