Present and Future Value Tables of $1 at 9% Are

question 2

Multiple Choice

Present and future value tables of $1 at 9% are presented below.

-An investment product promises to pay $42,000 at the end of 10 years. If an investor feels this investment should produce a rate of return of 12%, compounded annually, what's the most the investor should be willing to pay for the investment?

• A) $15,146.
• B) $13,523.
• C) $42,000.
• D) $130,446.

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