Using the present value tables, compute the present value of $30,000 discounted back 6 periods at 7%.
A)$24,500
B)$18,400
C)$23,700
D)$19,980

Question

Quizplus · Accepted Answer

Using the present value table for a discount rate of 7% and n=6 periods, the present value factor is 0.798.
Present value = $30,000 x 0.798 = $23,940. Therefore, the best choice is D, which is the closest option to $23,940.

Using the Present Value Tables, Compute the Present Value of $30,000