If Lucy earns a 6% after-tax rate of return, $8,000 received in four years is worth how much today? (round present and future value amounts to 3 places)
A) $8,000.
B) $7,544.
C) $8,989.
D) $6,336.
E) None of these.

Name: If Lucy earns a 6% after-tax rate of return, $8,000 received in four years is worth how much today? (round present and future value amounts to 3 places) A) $8,000. B) $7,544. C) $8,989. D) $6,336. E) None of these.
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Question

Quizplus · Accepted Answer

$8,000 × .792 (Discount Factor, 4 years, 6%) = $6,336.

If Lucy Earns a 6% After-Tax Rate of Return, $8,000