Below Is a Table for the Present Value of $1

question 26

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 would be the present value of $10,000 (rounded to the nearest dollar) to be received three years from today, assuming an earnings rate of 6%?

• A) $8,400
• B) $8,900
• C) $7,920
• D) $11,905

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Definitions:

Geometric Sequence

A series of numbers in which each subsequent number is obtained by multiplying the preceding number by a constant, non-zero value known as the common ratio.

Geometric Sequence

An array of numbers wherein each element, after the first, is calculated by multiplying the previous element by a stable, non-zero quantity referred to as the common ratio.

First Five Terms

Denotes the initial five elements or numbers in a sequence or series.

Geometric Sequence

A succession of numbers where, from the second element onwards, each number is derived by multiplying its precursor by a steady, non-zero coefficient known as the common ratio.