Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at Compound interest. Year
Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% ON 0.943 0.909 0.893 0.890 0.826 0.797 0.840 0.751 0.712 0.792 0.683 0.636 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 0.943 1.833 2.673 3.465 4.212 0.909 1.736 2.487 3.170 3.791 0.893 1.690 2.402 3.037 3.605 Using the tables above, what would be the present value of $27,000 (rounded to the nearest dollar) to be received three years from today, assuming an earnings rate of 6%? a. $72,171 b. $33,869 c. $22,680 d. $27,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started