Reba wishes to know how much would be in her savings account if she deposits a given sum in an account and leaves it there at 6% interest for five years. She should use a table for the:
A) Future value of an ordinary annuity of $1.
B) Future value of $1.
C) Future value of an annuity of $1.
D) Present value of an annuity due of $1.

Question

Quizplus · Accepted Answer

Reba wants to know the future value of a single sum, not an annuity, so there is no need to use tables for annuities. Therefore, the appropriate table to use is the future value of $1.

Reba Wishes to Know How Much Would Be in Her