Items 52 Through 55 Apply to the Appropriate Use of Present

Multiple Choice

Items 52 through 55 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 52 to 55 is based on 10% interest compounded annually.

-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 × 0.826
B) $4,000 × 0.826 × 2
C) $4,000 ÷ 0.826
D) $4,000 ÷ 0.909 × 2