Using the Following Partial Table of Present Value of $1

question 61

Multiple Choice

Using the following partial table of present value of $1 at compound interest, compute the present value of $20,000 (rounded to nearest dollar) to be received one year from today, assuming an earnings rate of 15%. ? $$\begin{array} { c c c c } \text { Year } & 10 \% & 15 \% & 20 \% \\\hline 1 & 0.909 & 0.870 & 0.833 \\2 & 0.826 & 0.756 & 0.694 \\3 & 0.751 & 0.658 & 0.579 \\4 & 0.683 & 0.572 & 0.482 \\5 & 0.621 & 0.497 & 0.402 \\6 & 0.564 & 0.432 & 0.335 \\7 & 0.513 & 0.376 & 0.279 \\\hline\end{array}$$

• A) $17,400
• B) $17,000
• C) $20,000
• D) $15,451

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