Thanks Below is a table for the present value of $i at Compound interest. Year 6

Question

Thanks

Below is a table for the present value of $i at Compound interest. Year 6% 0.943 0.890 0.840 0.792 0.747 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 4 Below is a table for the present value of an annuity of st at compound interest. 6% 0.943 1.833 2.673 3,465 4 212 10% 0.909 1.736 2.487 3.170 3.791 Year 12% 0.893 1.690 2.402 3.037 3.605 tU'sing the tables above, determine the present value of sio.403.00 (rounded to the nearest dollar) to be received at the end of each of the nesxt 3 years, assuming an earnings rate of 10%. Select the correct answer. 510,403 $13,529 $9,363 525,872

Explanation / Answer

1) Answer (D) $25,872

Calculation :

Present value = Annual cash flow * PVAF@10%,3years

= $10,403 * 2.487

= $25,872

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