Items 69 Through 72 Apply to the Appropriate Use of Present

question 8

Multiple Choice

Items 69 through 72 apply to the appropriate use of present value tables. Given below are the present value factors for $1.00 discounted at 10% for one to five periods. Each of the items 69 to 72 is based on 10% interest compounded annually.

-What is the present value today of $9,000 to be received six years from today?

• A) $9,000 × 0.909 × 6
• B) $9,000 × 0.751 × 2
• C) $9,000 × 0.621 × 0.909
• D) $9,000 × 0.683 × 3

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