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 is 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%?

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 is 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%?

Quizplus · Accepted Answer

Using the table for the present value of an annuity of $1 at 10% interest, the factor for n=4 years is 3.16986. 
PV of the annuity = $6,000 multiplied by the factor = $19,019.16 (rounded to the nearest cent).
Therefore, the present value of $6,000 to be received at the end of each of the next 4 years is $19,020.

Below Is a Table for the Present Value of $1