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 10% a year:

Question

Quizplus · Accepted Answer

From the table, the present value of $1 at 10% for four years is 0.683. Therefore, the present value of $20,000 is calculated as $20,000 x 0.683 = $13,660. Thus, choice A is the correct answer.

Using the Following Partial Table of Present Value of $1