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 $15,000 to be received at the end of each of the next 2 years, 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 $15,000 to be received at the end of each of the next 2 years, assuming an earnings rate of 6%, is

Quizplus · Accepted Answer

The present value of $15,000 to be received at the end of each of the next 2 years, assuming an earnings rate of 6%, is $27,495. This can be calculated using the present value formula:PV = FV / (1 + r)^nwhere:PV is the present valueFV is the future valuer is the earnings raten is the number of yearsIn this case, the future value is $15,000, the earnings rate is 6%, and the number of years is 2. Plugging these values into the formula, we get:PV = 15,000 / (1 + 0.06)^2PV = 15,000 / 1.1236PV = $27,495

Following Is a Table for the Present Value of $1