Matt needs to compute the present value of $5,000 to be received four years from now. He should multiple $5,000 by the appropriate present value interest factor obtained from the present value of $1 table.

Question

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To find the present value of a future amount, you multiply the future amount by the present value interest factor, which is found in the present value of $1 table for the given interest rate and time period.

Matt Needs to Compute the Present Value of $5,000 to Be