Items 52 through 55 apply to the appropriate use of present value tables. Given below are the present value factors for $1.00 discounted at 10% for one to five periods. Each of the items 52 to 55 is based on 10% interest compounded annually.

-What is the present value today of $6,000 to be received six years from today?
A) $6,000 × 0.909 × 6
B) $6,000 × 0.751 × 2
C) $6,000 × 0.621 × 0.909
D) $6,000 × 0.683 × 3

Question

Items 52 through 55 apply to the appropriate use of present value tables. Given below are the present value factors for $1.00 discounted at 10% for one to five periods. Each of the items 52 to 55 is based on 10% interest compounded annually.
 
-What is the present value today of $6,000 to be received six years from today?
A) $6,000 × 0.909 × 6 
B) $6,000 × 0.751 × 2 
C) $6,000 × 0.621 × 0.909 
D) $6,000 × 0.683 × 3

Quizplus · Accepted Answer

$6,000 × 0.621 × 0.909

Items 52 Through 55 Apply to the Appropriate Use of Present