Use These Present Value Tables to Answer the Questions That

question 178

Multiple Choice

Use these present value tables to answer the questions that follow.
​
Below is a table for the present value of $1 at compound interest.
​
$$\begin{array} { c c c c } \text { Year } & 6 \% & 10 \% & 12 \% \\\hline 1 & 0.943 & 0.909 & 0.893 \\2 & 0.890 & 0.826 & 0.797 \\3 & 0.840 & 0.751 & 0.712 \\4 & 0.792 & 0.683 & 0.636 \\5 & 0.747 & 0.621 & 0.567\end{array}$$ Below is a table for the present value of an annuity of $1 at compound interest.
​​
$$\begin{array} { c c c c } \text { Year } & 6 \% & 10 \% & 12 \% \\\hline 1 & 0.943 & 0.909 & 0.893 \\2 & 1.833 & 1.736 & 1.690 \\3 & 2.673 & 2.487 & 2.402 \\4 & 3.465 & 3.170 & 3.037 \\5 & 4.212 & 3.791 & 3.605\end{array}$$
-Using the tables above, what would be the present value of $30,000 to be received three years from today, assuming an earnings rate of 6%?

• A) $25,200
• B) $26,700
• C) $23,760
• D) $80,190

---

Definitions:

Environmental Wisdom

is a philosophy that emphasizes living in harmony with the natural world, recognizing the interdependence of all living beings.

Economic Growth

The increase in the inflation-adjusted market value of the goods and services produced by an economy over time.

Poverty Alleviation

A set of measures, both economic and social, intended to permanently lift people out of poverty by improving their living conditions and economic statuses.

Deep Ecology

An environmental philosophy that emphasizes the intrinsic value of all living beings and the need for humans to harmoniously coexist with nature.