Present Value of Amounts Due Assume that you are going to receive $50,000 in 10 years. The current market rate of interest is 4%. a. Using the present value of $1 table in Exhibit 5, determine the present value of this amount compounded annually. Round to the nearest whole dollar b. Why is the present value less than the $50,000 to be received in the future? The present value is less due to the compounding of interest over the 10 years. Present Value of $1 at Compound Interest Due in n Periods 0.87719 0.76947 0.67497 0.59208 0.54276 0.51937 0.92593 089286 0.79719 0.71178 0.63552 0.56743 0.88496 0.78315 0.84168 0.79383 0.75131 0.73119 0.65873 0.61332 0.64993 0.63017 0.58349 0.54027 0.50025 046319 059627 0.45559 0425060.39964 0.35056 045235 040388 0.48166 043393 0.39092 0.35218 050187 0.46651 0.37616 0.42241 0.31728 0.38753 035553 032618 0.29925 0.27454 0.35049 0.28748 0.23662 0.39711 0.23071 0.18207 0.15971 0.14010 13 0.25751 0.23199 0.22917 0.20416 031524 0.23939 0.18270 0.21763 0.29189 0.27027 0.25025 0.25187 0.16312 0.12289 0.10780 0.09456 0.08295 0.07276 0.16963 0.12522 0.11081 0.23107 0.16351 0.19449 20 021455 0.12403 0.10367 0.13513 0.12285 21 0.11174 0.06383 0.05599 0.04911 0.04308 0.03779 0.07379 0.06588 0.06014 0.05323 0.04710 0.17032 0.13778 0.09069 0.08170 0.07361 25 0.13520 0.12519 0.11591 0.10733 0.10639 0.09761 0.08955 0.08215 0.07537 0.05252 0.04168 0.03315 0.02908 0.02551 0.02237 0.01963 0.07628 0.05974 0.03264 0.02889 0.02557 0.04187 0.03738 0.03338 29 30 0.04368 003935 0.02262 0.01722 0.02002 0.01510 0.01772 0.01325 0.06915 0.08520 0.04736 0.05820 0.05339 003194 0.02878 0.02592 0.02376 0.02121 0.01894 0.06763 .00753 0.00529 .00409 0.00275 0.00222 40 0.03184 0.02209 0.01075 0.03133 0.00610 0.02132 0.00143