Question: Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797

Below is a table for the present value of $1 at Compound interest.

Year 6% 10% 12%

1 0.943 0.909 0.893

2 0.890 0.826 0.797

3 0.840 0.751 0.712

4 0.792 0.683 0.636

5 0.747 0.621 0.567

Below is a table for the present value of an annuity of $1 at compound interest.

Year 6% 10% 12%

1 0.943 0.909 0.893

2 1.833 1.736 1.690

3 2.673 2.487 2.402

4 3.465 3.170 3.037

5 4.212 3.791 3.605

Using the tables above, determine the present value of $55,000.00 (rounded to the nearest dollar) to be received two years from today, assuming an earnings rate of 12%.

Select the correct answer.

a. $43,835

b. $68,992

c. $55,000

d. $92,950

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