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 $6,000 to be received at the end of each of the next 4 years, assuming an earnings rate of 10%, 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 $6,000 to be received at the end of each of the next 4 years, assuming an earnings rate of 10%, is

Quizplus · Accepted Answer

The present value of an annuity can be calculated using the present value of annuity factor for 4 years at 10%, which is approximately 3.169. Multiply this factor by $6,000 to get $19,020.

Following Is a Table for the Present Value of $1