Question
The rate of earnings is 12% and the cash to be received in 2 years is $60,604. Determine the present value amount, using the following
The rate of earnings is 12% and the cash to be received in 2 years is $60,604. Determine the present value amount, using the following partial table of present value of $1 at compound interest (round to two decimal points).
| Year | 6% | 10% | 12% |
|---|---|---|---|
| 1 | 0.943 | 0.909 | 0.893 |
| 2 | 0.890 | 0.826 | 0.797 |
| 3 | 0.840 | 0.751 | 0.712 |
| 4 | 0.792 | 0.683 | 0.636 |
a. $43,150.05
b. $48,301.39
c. $54,119.37
d. $50,058.90
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Introduction To Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
3rd Edition
0073048836, 9780073048833
