Wilson, Inc.has 6% discount rate.Using the tables, how much is the present value of a $22,000 payment received in 3 years?
A)$18,471
B)$23,812
C)$25,123
D)$32,947

Question

Quizplus · Accepted Answer

To calculate the present value using the tables, we need to find the present value factor for 6% and 3 years, which is 0.83962. Then, we multiply the payment amount ($22,000) by the present value factor (0.83962) to get the present value, which is $18,471. This means that if we invested $18,471 today at a discount rate of 6%, we would have $22,000 in 3 years. Therefore, the best choice is A.