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Present and future value tables of $1 at 9% are presented below. PV of $1 FV of $1 PVA of $1 FVAD of $1 FVA
Present and future value tables of $1 at 9% are presented below.
PV of $1 | FV of $1 | PVA of $1 | FVAD of $1 | FVA of $1 | |
1 | 0.91743 | 1.09000 | 0.91743 | 1.0900 | 1.0000 |
2 | 0.84168 | 1.18810 | 1.75911 | 2.2781 | 2.0900 |
3 | 0.77218 | 1.29503 | 2.53129 | 3.5731 | 3.2781 |
4 | 0.70843 | 1.41158 | 3.23972 | 4.9847 | 4.5731 |
5 | 0.64993 | 1.53862 | 3.88965 | 6.5233 | 5.9847 |
6 | 0.59627 | 1.67710 | 4.48592 | 8.2004 | 7.5233 |
Louis Tire Company purchased a four-year certificate of deposit for its building fund in the amount of $160,000. How much should the certificate of deposit be worth at the end of four years if interest is compounded at an annual rate of 9%?
A. $518,355 B. $517,096 C. $225, 853 D. $224,594
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