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