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, the present value of $1 at 12% interest for three years is 0.7118. Therefore, the present value of $30,000 to be received three years hence is:

$30,000 x 0.7118 = $21,354

Since $21,354 is closest to $21,360, the correct answer is choice C.

Using the Following Partial Table of Present Value of $1