If the rate of earnings is 10% and the cash to be received in two years is $10,000, determine the present value amount, using the following partial table of present value of $1 at compound interest. $\begin{array}{|l|l|l|l|}
\hline 12 \% & 10 \% & 6 \% & \text { Year } \
\hline 0.893 & 0.909 & 0.943 & 1 \
\hline 0.797 & 0.826 & 0.890 & 2 \
\hline 0.712 & 0.751 & 0.840 & 3 \
\hline 0.636 & 0.683 & 0.792 & 4 \
\hline
\end{array}$

Question

Quizplus · Accepted Answer

The present value factor for 10% over 2 years is 0.826. Multiply $10,000 by 0.826 to get the present value: $10,000 * 0.826 = $8,260.

If the Rate of Earnings Is 10% and the Cash