Use the Present Value and Future Value Tables Included in Appendix

Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
- The present value of $1 discounted for 12 years at 9 percent compounded annually is 0.3555. The present value of an annuity of $1 discounted for 12 years at 9 percent compounded annually is 7.1607. Given this information, how much must be invested today so that $100 can be received each year for 12 years if money is worth 9 percent compounded annually?

A) $13.97
B) $35.55
C) $281.29
D) $716.07

Correct Answer:

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