P5-12 Present Value Concept- Answer each of the following questions.

A. What single investment made today, earning 12% annual interest, will be worth $6,000 at the end of 6 years?

B. What is the present value of $6,000 to be received at the end of 6 years if the discounted rate is 12%?

C. What is the most you would pay today for a promise to repay you $6,000 at the end of 6 years if your opportunity cost is 12%?

D. Compare, contrast, and discuss your findings in parts A through C.