Items 69 Through 72 Apply to the Appropriate Use of Present

question 92

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 amount should be deposited in a bank today to grow to $6,000 three years from today?

• A) $6,000 ÷ 0.751
• B) $6,000 × 0.909 × 3
• C) ($6,000 × 0.909) + ($6,000 × 0.826) + ($6,000 × 0.751)
• D) $6,000 × 0.751

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