You are given S = accumulated value of n payments of $1 at the time of the n^th payment.Which of the following will give the correct result for the accumulated value of n+ 1 payments of $1,one period after the (n+ 1)^th payment? A)[S (1 + i )+ 1](1 + i B)[S + 1](1 + i ) C)S (1 + i )² + 1 D)S (1 + i)+ 1

Question

Quizplus · Accepted Answer

Option A is using the formula for the future value of an annuity, which is S(1+i) multiplied by the future value factor for an annuity of n+1 periods, which is (1+i). 
Therefore, [S(1+i)+1](1+i) is the accumulated value of n+1 payments of $1, one period after the (n+1)th payment.

You Are Given S = Accumulated Value of N Payments