The Rate of Return Is 10% and the Cash to Be

question 100

Multiple Choice

The rate of return is 10% and the cash to be received in one year is $25,000.Determine the present value amount, using the following partial table of present value of $1 at compound interest: $$\begin{array} { l c c c } \hline \text { Year } & 6 \% & 10 \% & 12 \% \\\hline 1 & 0.943 & 0.909 & 0.893 \\2 & 0.890 & 0.826 & 0.797 \\3 & 0.840 & 0.751 & 0.712 \\4 & 0.792 & 0.683 & 0.636\end{array}$$

• A) $22,500
• B) $25,000
• C) $27,275
• D) $22,725

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