Which table would show the largest factor for an interest rate of 8% for five periods?
A) Future value of an ordinary annuity of 1
B) Present value of an ordinary annuity of 1
C) Future value of an annuity due of 1
D) Present value of an annuity due of 1

Question

Quizplus · Accepted Answer

The future value of an annuity due of 1 will show the largest factor for an interest rate of 8% for five periods because payments are made at the beginning of each period, allowing more time for each payment to accrue interest compared to an ordinary annuity where payments are made at the end of each period.

Which Table Would Show the Largest Factor for an Interest