Reference no: EM131793076

Question - The following items apply to the appropriate use of present value tables. Given below are the present value factors for $1.00 discounted at 10% for one to five periods. Each of the items is based on 10% interest compounded annually.

Present Value of $1

Periods Discounted at 10% per Period

1 0.909

2 0.826

3 0.751

4 0.683

5 0.621

If an individual put $4,000 in a savings account today, what amount of cash would be available two years from today?

A) $4,000 x 0.826 x 2

B) $4,000 / 0.826

C) $4,000 x 0.826

D) $4,000 / 0.909 x 2