Assuming that the desired rate of return is 6%, determine the present value of $10,000 to be received in one year, using the following partial table of present value of $1 at compound interest. $$\begin{array} { | l | l| l | l | }
\hline 12 \% & 10 \% & 6 \% & \text { Year } \
\hline 0.893 & 0.909 & 0.943 & 1 \
\hline 0.797 & 0.826 &0 .890 & 2 \
\hline 0.712 & 0.751 & 0.840 & 3 \
\hline 0.636 & 0.683 & 0.792 & 4 \
\hline & & &
\end{array}$$

Question

Assuming that the desired rate of return is 6%, determine the present value of $10,000 to be received in one year, using the following partial table of present value of $1 at compound interest. $$\begin{array} { | l | l| l | l | } 
\hline 12 \% & 10 \% & 6 \% & \text { Year } \
\hline 0.893 & 0.909 & 0.943 & 1 \
\hline 0.797 & 0.826 &0 .890 & 2 \
\hline 0.712 & 0.751 & 0.840 & 3 \
\hline 0.636 & 0.683 & 0.792 & 4 \
\hline & & &
\end{array}$$

Quizplus · Accepted Answer

The present value factor for 6% for 1 year is 0.943. Multiply $10,000 by 0.943 to get the present value: $10,000 * 0.943 = $9,430.

Assuming That the Desired Rate of Return Is 6%, Determine