Following is a table for the present value of $1 at compound interest: Following is a table for the present value of an annuity of $1 at compound interest:
-Using the tables provided, the present value of $30,000 to be received 3 years from today, assuming an earnings rate of 6%, is

Question

Following is a table for the present value of $1 at compound interest:  Following is a table for the present value of an annuity of $1 at compound interest:  ​
-Using the tables provided, the present value of $30,000 to be received 3 years from today, assuming an earnings rate of 6%, is

Quizplus · Accepted Answer

The present value of $30,000 to be received 3 years from today, assuming an earnings rate of 6%, is $25,200. This is because the present value of a future sum of money is the amount of money that, if invested today at a given interest rate, will grow to the future sum at the end of the investment period. In this case, the present value of $30,000 to be received 3 years from today, assuming an earnings rate of 6%, is $25,200.

Following Is a Table for the Present Value of $1