Using the Following Partial Table of Present Value of $1

question 175

Multiple Choice

Using the following partial table of present value of $1 at compound interest, determine the present value of $50,000 to be received 3 years hence with earnings at the rate of 12% a year:

• A) $37,550
• B) $31,800
• C) $35,600
• D) $39,850

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Definitions:

Minimize Costs

The process of finding ways to reduce expenses and lower the cost of production in order to increase profitability.

Last Dollar

The concept of last dollar refers to the final portion of funding or resources available for a project, initiative, or individual, often indicating the utilization of all available funds.

Minimize Costs

The process or strategy of reducing expenses to the lowest possible level while maintaining efficiency.

Last Dollar

The final unit of currency spent or invested in the completion of a transaction or project.