Assume you bought a state-of-the-art entertainment system, with no payments to be made until two years from now, when you must pay $6,000. If the going rate of interest on most loans is 5 percent, which table in this appendix would you use to calculate the system’s equivalent cost if you were to pay for it today?

a. Table C.1 (Future Value of $1)
b. Table C.2 (Present Value of $1)
c. Table C.3 (Future Value of Annuity of $1)
d. Table C.4 (Present Value of Annuity of $1)

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TABLE C.2 Present Value of $1 Periods 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% 0.98039 0.97087 0.96386 0.96154 0.95923 0.95238 0.94340 0.93458 0.92593 0.92456 0.88900 0.85480 0.96117 0.94260 0.92902 0.92013 0.90703 0.89000 0.87344 0.85734 0.89544 0.88262 0.86384 0.81630 0.79383 0.73503 3 0.94232 0.91514 0.83962 4 0,92385 0,88849 0.86307 0.84663 0.82270 0.79209 0.76290 5 0.90573 0.86261 0.83188 0.82193 0.81212 0.78353 0.74726 0.71299 0.68058 6 0.88797 0.83748 0.80181 0.79031 0.77901 0.74622 0.70496 0.66634 0.63017 0.87056 0.81309 0.77283 0.75992 0.74725 0.71068 0.66506 0.62275 0.58349 8. 0.85349 0.78941 0.74490 0.73069 0.71679 0.67684 0.62741 0.58201 0.54027 9 0.83676 0.76642 0.71797 0.70259 0.68757 0.64461 0.59190 0.54393 0.50025 10 0.82035 0.74409 0.69202 0.67556 0.65954 0.61391 0.55839 0.50835 0.46319 20 0.67297 0.55368 0.47889 0.45639 0.43499 0.37689 0.31180 0.25842 0.21455 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 1. 0.91743 0.90909 0.90090 0.89286 0.88496 0.87719 0.86957 0.83333 0.80000 0.84168 0.82645 0.81162 0.79719 0.78315 0.76947 0.75614 0.69444 0.64000 0.77218 0.75131 0.73119 0.71178 0.69305 0.67497 0.65752 0.57870 0.51200 0.70843 0.63552 0.56743 4 0.68301 0.65873 0.61332 0.59208 0.57175 0.48225 0.40960 5 0.64993 0.62092 0.59345 0.54276 0.51937 0.49718 0.40188 0.32768 0.59627 0.56447 0.53464 0.50663 0.48032 0.45559 0.43233 0.33490 0.26214 7 0.54703 0.51316 0.48166 0.45235 0.42506 0.39964 0.37594 0.27908 0.20972 8 0.50187 0.46651 0.43393 0.40388 0.37616 0.35056 0.32690 0.23257 0.16777 9 0.46043 0.42410 0.39092 0.36061 0.33288 0.30751 0.28426 0.19381 0.13422 10 0.42241 0.38554 0.35218 0.32197 0.29459 0.26974 0.24718 0.16151 0.10737 20 0.17843 0.14864 0.12403 0.10367 0.08678 0.07276 0.06110 0.02608 0.01153