Assuming that the desired rate of return is 6%,determine the present value of $10,000 to be received in one year,using the following partial table of present value of $1 at compound interest.

Question

Quizplus · Accepted Answer

The present value of $1 to be received in one year at 6% is $0.9434. Therefore, the present value of $10,000 to be received in one year at 6% is $10,000 x 0.9434 = $9,434.

Assuming That the Desired Rate of Return Is 6%,determine the Present