Using the following partial table of present value of $1 at compound interest, determine the present value of $30,000 to be received three years hence, with earnings at the rate of 12% a year:

Question

Quizplus · Accepted Answer

Using the table, the present value of $1 at 12% for three years is 0.7118. Therefore, to find the present value of $30,000, we multiply it by the present value of $1:
30,000 x 0.7118 = $21,354
Rounding to the nearest dollar, the answer is $21,360, which is choice C.

Using the Following Partial Table of Present Value of $1