Determine the present value of $70,000 to be received in one year, at 6% compounded annually (rounded to nearest dollar). Use the following table, if needed.

Present Value of $1 at Compound Interest

Periods 5% 6% 7% 10% 12%

1 0.95238 0.94340 0.93458 0.90909 0.89286

2 0.90703 0.89000 0.87344 0.82645 0.79719

3 0.86384 0.83962 0.81630 0.75132 0.71178

4

5

6

7

8

9

10

Select the correct answer.

$65,421

$66,038

$70,000

$62,500