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

From the table, we can see that the present value of $1 at 12% for 3 years is 0.712. 
Therefore, the present value of $30,000 would be:

PV = 30,000 x 0.712 
PV = $21,360

So, the correct answer is C.

Using the Following Partial Table of Present Value of $1