Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 3

Assume you bought a state of the art entertainment system, with no payments to be made until two years from now, when you must pay $6,000. If the going rate of interest on most loans is 5 percent, when table in this appendix would you use to calculate the system's equivalent cost if you were to pay for it today
A) Table C.1 (Future Value of $1)
B) Table C.2 (Present Value of $1)
C) Table C.3 (Future Value of Annuity of $1)
D) Table C.4 (Present Value of Annuity of $1)