George Jones is planning on a cruise for his 70th birthday party.He wants to know how much he should set aside at the beginning of each month at 6% interest to accumulate the sum of $4,800 in five years.He should use a table for the:

Question

Quizplus · Accepted Answer

Since George is planning on setting aside the same amount of money at the beginning of each month, this is an annuity due. And since he wants to know how much he needs to set aside now to accumulate a future value of $4,800 in 5 years, we need to use the future value of an annuity due of 1. Therefore, choice B is the best option.

George Jones Is Planning on a Cruise for His 70th