Below is a table for the present value of $1 at compound interest.
Below is a table for the present value of an annuity of $1 at compound interest.
Using the tables above, what would be the present value of $25,000 (rounded to the nearest dollar) to be received 4 years from today, assuming an earnings rate of 10%?

Question

Below is a table for the present value of $1 at compound interest. 
Below is a table for the present value of an annuity of $1 at compound interest. 
Using the tables above, what would be the present value of $25,000 (rounded to the nearest dollar) to be received 4 years from today, assuming an earnings rate of 10%?

Quizplus · Accepted Answer

From the present value of $1 table, we find the factor for 4 years at 10% to be 0.683.
From the present value of an annuity of $1 table, we find the factor for 4 years at 10% to be 3.170.
To find the present value of $25,000, we multiply $25,000 by the factor from the first table and then by the factor from the second table: 
$25,000 x 0.683 x 3.170 = $54,732.25
Thus, the present value of $25,000 rounded to the nearest dollar is $17,075.

Below Is a Table for the Present Value of $1