Using the tables above,what is the present value of $6,000 to be received at the end of each of the next 4 years,assuming an earnings rate of 10%?

Question

Quizplus · Accepted Answer

The present value factor for 10% earnings rate and 4 years is 0.683; therefore, the present value of $6,000 to be received at the end of each of the next 4 years is calculated as follows: 
PV = $6,000 x 0.683 x 4 = $16,392 
Therefore, the closest choice is B, which is $19,020, and is the nearest to the calculated present value.

Using the Tables Above,what Is the Present Value of $6,000