The present value of $40,000 to be received in two years, at 12% compounded annually, is Present Value of $1 at Compound Interest Periods 1 2 3 4 5 6 7 8 9 10 12% 0.95238 0.94340 0.93458 0.90909 0.89286 0.90703 0.89000 0.87344 0.82645 0.79719 0.86384 0.83962 0.81630 0.75132 0.71178 0.82270 0.79209 0.76290 0.68301 0.63552 0.78353 0.74726 0.71299 0.62092 0.56743 0.74622 0.70496 0.66634 0.56447 0.50663 0.66506 0.62275 0.51316 0.45235 0.67684 0.62741 0.58201 0.40388 0.64461 0.59190 0.54393 0.42410 0.36061 0.61391 0.55840 0.50835 0.38554 0.32197 5% 0.71068 a. $40,000 Ob. $48,112 OC. $8,112 d. $31,888 6% 7% 10% 0.46651 (rounded to nearest dollar). Use the following table, if needed.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 7P
icon
Related questions
Question
The present value of $40,000 to be received in two years, at 12% compounded annually, is
Present Value of $1 at Compound Interest
Periods
1
2
3
4
6
7
8
9
10
5%
0.95238
0.90703
0.82270
0.78353
0.74622
0.89000 0.87344
0.86384 0.83962 0.81630
0.79209 0.76290
0.74726
0.71068
0.67684
0.64461
0.61391
a. $40,000
Ob. $48,112
Oc. $8,112
Od. $31,888
6%
0.94340
7%
0.93458
0.70496
0.71299
10%
0.90909
0.82645
0.75132
0.68301
0.62092
0.66634 0.56447
0.66506 0.62275 0.51316
0.62741 0.58201
0.46651
0.59190
0.54393
0.55840 0.50835 0.38554
0.42410
12%
0.89286
0.79719
0.71178
0.63552
0.56743
0.50663
0.45235
0.40388
0.36061
0.32197
(rounded to nearest dollar). Use the following table, if needed.
Transcribed Image Text:The present value of $40,000 to be received in two years, at 12% compounded annually, is Present Value of $1 at Compound Interest Periods 1 2 3 4 6 7 8 9 10 5% 0.95238 0.90703 0.82270 0.78353 0.74622 0.89000 0.87344 0.86384 0.83962 0.81630 0.79209 0.76290 0.74726 0.71068 0.67684 0.64461 0.61391 a. $40,000 Ob. $48,112 Oc. $8,112 Od. $31,888 6% 0.94340 7% 0.93458 0.70496 0.71299 10% 0.90909 0.82645 0.75132 0.68301 0.62092 0.66634 0.56447 0.66506 0.62275 0.51316 0.62741 0.58201 0.46651 0.59190 0.54393 0.55840 0.50835 0.38554 0.42410 12% 0.89286 0.79719 0.71178 0.63552 0.56743 0.50663 0.45235 0.40388 0.36061 0.32197 (rounded to nearest dollar). Use the following table, if needed.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Present Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning