Compute the present value of $46,000, invested for six years at 8%
Present value of $1:
5% 6% 7% 8% 9%
3 0.864 0.840 0.816 0.794 0.772
4 0.823 0.792 0.763 0.735 0.708
5 0.784 0.747 0.713 0.681 0.650
6 0.746 0.705 0.666 0.630 0.596
7 0.711 0.665 0.623 0.583 0.547
A) $36,647
B) $25,300
C) $32,660
D) $28,980
D .Future Value $46,000
Present Value Factor 0.630
Present Value ($46,000 x 0.630 ) $28,980
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When an accidental death benefit is added to a whole life policy, how does this affect the policy's cash value?
A) Increases the policy's cash value B) Decreases the policy's cash value C) Policy's cash value is not affected D) Policy loans will no longer be available
Use the information in Table 10.4. How much total slack will be generated from the schedule?
A) fewer than six days B) six days C) seven days D) greater than seven days