Using the following partial table of present value of $1 at compound interest,determine the present value of $20,000 to be received four years hence with earnings at the rate of 12% a year:

Name: Using the following partial table of present value of $1 at compound interest,determine the present value of $20,000 to be received four years hence with earnings at the rate of 12% a year:
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Question

Quizplus · Accepted Answer

The present value factor for 4 years at 12% is approximately 0.636. Multiplying $20,000 by 0.636 gives $12,720.

Using the Following Partial Table of Present Value of $1