Susie wants to know how much she needs to save today to have $5,000 in five years. Which of the following tables should she use?
A) Present value of $1
B) Present value of an ordinary annuity
C) Future value of $1
D) Future value of an ordinary annuity

Question

Quizplus · Accepted Answer

To determine how much she needs to save today to have a specific amount in the future, Susie should use the "Present value of $1" table. This table helps calculate the amount that needs to be invested today (present value) to grow to a certain amount in the future, given a specific interest rate and time period.

Susie Wants to Know How Much She Needs to Save