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Following is a table for the present value of $1 at compound interest: Year 6%...

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Accounting

Following is a table for the present value of $1 at compound interest:

Year 6% 10% 12%

1 0.943 0.909 0.893

2 0.890 0.826 0.797

3 0.840 0.751 0.712

4 0.792 0.683 0.636

5 0.747 0.621 0.567

Following is a table for the present value of an annuity of $1 at compound interest:

Year 6% 10% 12%

1 0.943 0.909 0.893

2 1.833 1.736 1.690

3 2.673 2.487 2.402

4 3.465 3.170 3.037

5 4.212 3.791 3.605

Using the tables provided, the present value of $15,000 to be received at the end of each of the next 2 years, assuming an earnings rate of 6%, is

a.$25,350

b.$27,495

c.$26,040

d.$30,000

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