The present value of $30,000 to be received in 5 years at an interest rate of 16%, compounded annually, is $14,283.Required:Using a present value table (Table 6-4 and Table 6-5), calculate the present value of $30,000 for each of the following items (parts a—f) using these facts: (Use the appropriate value(s) from the tables provided. Round your PV factors to 4 decimal places and final answers to the nearest whole dollar.)a. Interest is compounded semiannually.   b. Interest is compounded quarterly.   c. A discount rate of 14% is used.   d. A discount rate of 20% is used.   e. The cash will be received in 3 years.   f. The cash will be received in 7 years.

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.