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moodle-2017-2018.calstatela.edu s Internat onal to Maa Ninoy Aquino at... Home Cal State LA STATE LA Moodle 2017-2018 Use the table below to answer the following questions: Present Value of Present Value of 1 Period 8% 4% 0.9615 0.9259 0.9615 0.9259 0.9246 0.8573 1.8861 1.7833 0.8890 0.7938 2.7751 2.5771 0.8548 0.7350 3.6299 3.3121 0.8219 0.6806 4.4518 3.9927 0.7903 0.6302 5.2421 4.6229 4% 8% 2 4 5 6 Assumption: Required annual percentage rate (APR) of return is 8%. If an investment pays you $16000 at the end of each year for 3 years, what is its present value? Select one: A. $41,234 B. $44,533 C. $41,150 D. $38,102

Explanation / Answer

Present value=$16000*Present value of annuity factor(8%,3)

=$16000*2.5771

$41234(Approx)(A)

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