Use this information to answer the following question. $\begin{array}{|c|c|c|}
\hline \text { Periods } & \text { Present Value of } \$ 1 \text { at } 7 \text { Percent } & \begin{array}{c}
\text { Present Value of Ordinary Annuity of } \$ 1 \
\text { at } 7 \text { Percent }
\end{array} \
\hline 1 & 0.935 & 0.935 \
\hline 2 & 0.873 & 1.808 \
\hline 3 & 0.816 & 2.624 \
\hline
\end{array}$ What amount must be deposited today so that $600 may be withdrawn at the end of each year for three years?
A) $1,800.00
B) $1,925.14
C) $1,574.40
D) $1,683.00

Question

Quizplus · Accepted Answer

The present value of an ordinary annuity of $1 at 7% for 3 periods is 2.624. To find the amount to be deposited today, multiply $600 by 2.624, which equals $1,574.40.

Use This Information to Answer the Following Question What Amount Must Be Deposited Today So That $600 May