Jerry wants to know how much he needs to save every year to accumulate $15,000 in five years at a 10 percent interest rate.Which of the following tables should he use?
A)Present value $1
B)Present value ordinary annuity
C)Future value $1
D)Future value ordinary annuity

Question

Quizplus · Accepted Answer

Jerry wants to know how much he needs to save every year to accumulate a specific amount (future value) in a specific time period, which is an example of a future value ordinary annuity. Therefore, he should use the table for future value ordinary annuity to determine how much he needs to save annually to reach his goal.

Jerry Wants to Know How Much He Needs to Save