alleryStart learning →A $40,275.96 cost due in 40 years is discounted at 9%. The present value is about what?
A$1,282
B$4,028
C$15,000
D$36,000
Answer & Solution
Correct answer: A. $1,282
Dividing 40,275.96 by 1.09 to the power 40 gives about $1,282.29, which is booked as the obligation.
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