Knowledge Check 01

Periods	1%	2%	3%	4%
1	0.9901	0.9804	0.9709	0.9615
2	0.9803	0.9612	0.9426	0.9246
3	0.9706	0.9423	0.9151	0.8890
4	0.9610	0.9238	0.8885	0.8548
5	0.9515	0.9507	0.8626	0.8219

Use this partial present value of 1 table to determine the interest rate necessary to earn a future value of $10,404 assuming a present value of $10,000 after 2 years.

multiple choice

• 1%

• 2%

• 3%

• 4%