Matt needs to compute the present value of $5,000 to be received four years from now.He should multiply $5,000 by the appropriate present value interest factor obtained from the present value of $1 table.

Question

Quizplus · Accepted Answer

To compute the present value of $5,000 to be received in the future, Matt should indeed multiply $5,000 by the present value interest factor for the specific time period and interest rate, which can be found in the present value of $1 table. This factor accounts for the time value of money, discounting the future amount to its present value.

Matt Needs to Compute the Present Value of $5,000 to Be