Which table would you use to determine how much you would need to have deposited three years ago at 10% compounded annually in order to have $1,000 today?
A) Future value of 1 or present value of 1
B) Future value of an annuity due of 1
C) Future value of an ordinary annuity of 1
D) Present value of an ordinary annuity of 1

Question

Quizplus · Accepted Answer

The correct table to use is the "present value of 1" table. This table helps determine the amount you would need to deposit in the past (three years ago, in this case) at a given interest rate (10% compounded annually) to achieve a specific future amount ($1,000). It essentially calculates the present value of a future sum.

Which Table Would You Use to Determine How Much You