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

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: ​
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Quizplus · Accepted Answer

Using the table, we find the present value factor for 3 years at 12% to be 0.712.

Present value = Future value x Present value factor

Present value = $50,000 x 0.712

Present value = $35,600

Therefore, the present value of $50,000 to be received 3 years hence with earnings at the rate of 12% a year is $35,600, which corresponds to choice C.

Using the Following Partial Table of Present Value of $1