Which of the following tables would show the largest value for an interest rate of 10% for 8 periods?
A) Future amount of 1 table.
B) Present value of 1 table.
C) Future amount of an ordinary annuity of 1 table.
D) Present value of an ordinary annuity of 1 table.

Question

Quizplus · Accepted Answer

The Future amount of an ordinary annuity of 1 table calculates the value of a constant payment made each period for a specified number of periods, with interest compounded at a specific rate. Given that we need to find the largest value for an interest rate of 10% for 8 periods, the Future amount of an ordinary annuity of 1 table would be the best choice as it calculates the future value of a constant payment made for 8 periods at an interest rate of 10%, which would result in the largest value.

Which of the Following Tables Would Show the Largest Value