Using the following partial table of present value of $1 at compound interest,determine the present value of $20,000 to be received four years hence with earnings at the rate of 12% a year:

Question

Quizplus · Accepted Answer

From the table, the present value factor for 4 years at 12% rate of interest is 0.635.
Therefore, Present value = $20,000 x 0.635 = $12,720. Therefore, the correct choice is C.

Using the Following Partial Table of Present Value of $1