Hillary Jones wants to know how much she must deposit today at 12% interest to provide three equal annual withdrawals of $10, 000, beginning one year from now.This is an example of the present value of
A)an ordinary annuity
B)an annuity due
C)a single sum
D)a deferred annuity

Question

Quizplus · Accepted Answer

This problem involves finding the present value of three annual payments of $10,000, which is an example of an ordinary annuity because the payments are made at the end of each year.

Hillary Jones Wants to Know How Much She Must Deposit