You are calculating the present value of $15,000 that you will receive at the end of every year for the next ten years.Which table will you use to obtain the present value of those $15,000 payments you will be receiving?
A)Present Value of $1 table
B)Future Value of $1 table
C)Present Value of Ordinary Annuity of $1 table
D)Future Value of Ordinary Annuity of $1 table

Question

Quizplus · Accepted Answer

In this scenario, we are looking for the present value of a series of payments (an annuity) rather than a single lump sum. Thus, we would use the Present Value of Ordinary Annuity of $1 table to calculate the present value of the $15,000 payments.

You Are Calculating the Present Value of $15,000 That You