Patricia wants to invest a sum of money today that will yield $10,000 at the end of 6 years. Assuming she can earn an interest rate of 6% compounded annually, how much must she invest today? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
A) $7,050
B) $9,400
C) $6,000
D) $8,836
E) $8,306
A) $7,050
Explanation: The PV factor on the Present Value table when n = 6 and i = 6% is 0.7050
Present Value = Future Value * PV Factor
Present Value = $10,000 * 0.7050 = $7,050.00
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