Items 52 through 55 apply to the appropriate use of present value tables. Given below are the present value factors for $1.00 discounted at 10% for one to five periods. Each of the items 52 to 55 is based on 10% interest compounded annually.

-What amount should be deposited in a bank today to grow to $3,000 three years from today?
A) $3,000 ÷ 0.751
B) $3,000 × 0.909 × 3
C) ($3,000 × 0.909) + ($3,000 × 0.826) + ($3,000 × 0.751)
D) $3,000 × 0.751

Question

Items 52 through 55 apply to the appropriate use of present value tables. Given below are the present value factors for $1.00 discounted at 10% for one to five periods. Each of the items 52 to 55 is based on 10% interest compounded annually.
 
-What amount should be deposited in a bank today to grow to $3,000 three years from today?
A) $3,000 ÷ 0.751 
B) $3,000 × 0.909 × 3 
C) ($3,000 × 0.909) + ($3,000 × 0.826) + ($3,000 × 0.751) 
D) $3,000 × 0.751

Quizplus · Accepted Answer

$3,000 × 0.751

Items 52 Through 55 Apply to the Appropriate Use of Present