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TB MC Qu. 6-20 Present Value of $1 Discount Rate... Present Value of $1 Discount Rate...

TB MC Qu. 6-20 Present Value of $1 Discount Rate...

Present Value of $1 Discount Rate Present Value of an Annuity of $1 Discount Rate
Periods 8% 10% 8% 10%
5 0.6806 0.6209 3.9927 3.7908
7 0.5835 0.5132 5.2064 4.8684
9 0.5002 0.4241 6.2469 5.7590


The present value of $6,000 to be received in 7 years at 10% is: _____________

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Answer #1
The present value of $6,000 to be received in 7 years at 10% is $ 3,079.20
Working:
The present value of $6,000 to be received in 7 years at 10% = Amount to be received in 7 years * Present value of 1 discount rate at 10%
= $       6,000 * 0.5132
= $ 3,079.20
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