Below Is a Table for the Present Value of $1

question 79

Multiple Choice

Below is a table for the present value of $1 at compound interest. Below is a table for the present value of an annuity of $1 at compound interest.
Using the tables above, what is the present value of $6,000 (rounded to the nearest dollar) to be received at the end of each of the next 4 years, assuming an earnings rate of 10%?

• A) $20,790
• B) $19,020
• C) $14,412
• D) $25,272

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market stability where there is no excess supply or demand.

Consumption Tax

A tax on the spending on goods and services purchased by consumers.

Income

Regular revenue generated through employment or by making investments.

Goods and Services

Refers to the physical products and intangible benefits that fulfill the needs or wants of consumers.