Judy Jessop expects to receive $1000 at the end of each year for the next two years. Assuming an annual compound interest rate of 6%, what is the present value of these two annual payments? Present Value Interest Factors Period 2% 4% 6% 8% 10% 12% 15% 20% 1 2 3 4 5 6 8929 7972 7118 6355 5674 5066 4523 4039 7 8 3605 10 11 12 13 14 15 16 17 18 19 20 9804 .9612 9423 9238 9057 8880 8706 8535 8363 8203 8043 7885 7730 7579 .7430 7284 7142 .7002 6864 6730 .9615 .9246 8890 8548 8319 .7903 .7599 7307 7026 .6756 6496 6246 6006 .5775 5553 5339 5134 4936 .4746 .4564 9434 8900 8396 7921 7473 7050 6651 6274 5919 5584 5268 4970 A688 4423 4173 3936 3714 3503 3305 3118 9259 8573 7938 7350 6806 6302 5835 5403 5002 4632 A289 3971 3677 3405 3152 2919 2703 2502 2317 2145 9091 8264 .7513 6830 6209 .5645 5132 .4665 4241 3855 3505 .3186 2897 .2633 2394 2176 .1978 1799 .1635 .1486 3220 2875 2567 2292 2046 .1827 .1631 .1456 .1300 .1161 0037 8696 7561 6575 5718 4972 4323 3759 3269 2843 2472 2149 .1869 1625 .1413 .1229 1069 0929 DBOR 0703 0611 .8333 6944 5787 A823 4019 .3349 2791 2326 .1938 .1615 .1346 .1122 .0935 0779 0649 0541 .0451 0376 0313 0261 Select one: a. $1942 b. $1886 C. $1833 d. $1782 Next page Previous page