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The rate of earnings is 6% and the cash to be received in four years is $20,000. The present value amount, using the following partial table of present value of $1 at compound interest, is

Respuesta :

Answer:

$15,842

Step-by-step explanation:

We use the Present value formula

Present Value = Future value/(1 + r)ⁿ

r = 6% = 0.06

n = 4 years

Future value = $20,000

Present value = 20,000/(1 + 0.06)⁴

= $15841.873265

≈ $15,842

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