Using the Following Partial Table of Present Value of $1

question 91

Multiple Choice

Using the following partial table of present value of $1 at compound interest, compute the present value of $20,000 (rounded to nearest dollar) to be received one year from today, assuming an earnings rate of 15%. $$\begin{array} { |l | l | l | l | } \hline 20 \% & 15 \% & 10 \% & \text { Year } \\\hline 0.833 & 0.870 & 0.909 & 1 \\\hline 0.694 & 0.756 & 0.826 & 2 \\\hline 0.579 & 0.659 & 0.751 & 3 \\\hline 0.482 & 0.572 & 0.683 & 4 \\\hline 0.402 & 0.497 & 0.621 & 5 \\\hline 0.335 & 0.473 & 0.564 & 6 \\\hline 0.279 & 0.376 & 0.513 & 7 \\\hline & & & \\\hline\end{array}$$

• A) $17,400
• B) $17,000
• C) $20,000
• D) $15,451

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