Below Is a Table for the Present Value of $1

question 161

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, if an investment is made now for $20,000 that will generate a cash inflow of $7,000 a year for the next 4 years, what would be the present value (rounded to the nearest dollar) of the investment cash inflows, (assuming an earnings rate of 12%) ?

• A) $20,352
• B) $3,969
• C) $22,190
• D) $21,259

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