Using the following partial table of present value of $1 at compound interest, determine the present value of $50,000 to be received 3 years hence with earnings at the rate of 12% a year:

Question

Quizplus · Accepted Answer

Using the table, we can find a Present Value Factor (PVF) for 3 years at 12% interest rate to be 0.71178. 
So, the present value of $50,000 would be:
$50,000 x 0.71178 = $35,589. 
Therefore, the best choice is C, which is closest to $35,589.

Using the Following Partial Table of Present Value of $1