Question

Present and future value tables of $1 at 9% are presented below. PV of $1 0.91743 0.84168 0.77218 0.70843 0.64993 0.59627 FV
Multiple Choice $12,582 $12,315 $17,493 $17,760
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Answer #1
Solution:
CALCULATION OF PRESENT VALUE OF INVESTMENT
Let Assume we invested now $ X only
Now in three years with 9% FV of $ 1 = 1.29503
It means our investment Is become 1.29503 X
So ,          1.29503 X    =            $ 23,000
So, X =                           $ 23,000 / 1.29503
So, X =                            $ 17,760
Answer = Option 4 = $ 17,760
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