There is a problem in the book: What is the present value of: a . $9,000 in 7 years at 8 percent? b . $20,000 in 5 years at 10 percent?

There is a problem in the book:

What is the present value of:

        a.     $9,000 in 7 years at 8 percent?

        b.     $20,000 in 5 years at 10 percent?

        c.     $10,000 in 25 years at 6 percent?

        d.     $1,000 in 50 years at 16 percent?

9-2.            Solution:

Appendix B

PV = FV × PVIF

a.   $ 9,000 × .583  = $5,247

b.   $20,000 × .621 = $12,420

c.   $10,000 × .233 = $2,330

d.   $  1,000 × .001  = $1

How are they getting that middle decimal number? How is that being calculated?