LeAnn wishes to know how much she should set aside now at 7% interest in order to accumulate a sum of $5,000 in four years. She should use a table for the:
A)Present value of 1.
B)Future value of 1.
C)Present value of an ordinary annuity of 1.
D)Future value of an annuity due of 1.

Question

Quizplus · Accepted Answer

LeAnn should use the present value of 1 table to determine how much she needs to set aside now to reach a future sum of $5,000, considering the interest rate and time period.

LeAnn Wishes to Know How Much She Should Set Aside