The rate of earnings is 6%,and the cash to be received in one year is $10,000.Determine the present value amount,using the following partial table of present value of $1 at compound interest.

Question

Quizplus · Accepted Answer

To find the present value amount using the present value table, we need to multiply the cash to be received in one year by the present value factor for 6% and one year. From the table, we can see that the present value factor for 6% and one year is 0.9434.

Present Value = Cash to be received in one year x Present Value Factor
Present Value = $10,000 x 0.9434
Present Value = $9,434

Therefore, the closest answer choice is A) $9,430.

The Rate of Earnings Is 6%,and the Cash to Be