You are to receive $12,000 at the end of 5 years. The available yield on investments is 6%. Which table would you use to determine the value of that sum today?
A) present value of an annuity of $1
B) future value of an annuity
C) present value of $1
D) compound sum of $1

Question

Quizplus · Accepted Answer

To determine the value of the sum today, we need to use the present value of $1 table, which calculates the amount needed now to achieve a future sum based on a given interest rate and time period.

You Are to Receive $12,000 at the End of 5