Using the tables above,what is the present value of $3,000 (rounded to the nearest dollar)to be received at the end of each of the next 4 years,assuming an earnings rate of 12%?

Question

Quizplus · Accepted Answer

To calculate the present value of $3,000 to be received at the end of each of the next 4 years, we need to use the present value of an ordinary annuity table.

From the table, we find the present value factor for n=4 and i=12%, which is 3.0374.

To find the present value, we multiply the factor by the amount to be received each year:

Present value = $3,000 x 3.0374 
Present value = $9,112.20

Rounding this answer to the nearest dollar gives us a final answer of:

$9,111 (Choice C)

Using the Tables Above,what Is the Present Value of $3,000