The values shown in ordinary annuity tables (either present value or compound value) can be adjusted to the annuity due form by ____ the ordinary annuity interest factor by ____. A) dividing; (1 + i) B) dividing; (1 + i)ⁿ C) multiplying; (1 + i) D) multiplying; (1 + i)ⁿ

Question

Quizplus · Accepted Answer

To adjust ordinary annuity tables to the annuity due form, we need to account for the fact that annuity due payments are made at the beginning of each period, while ordinary annuity payments are made at the end of each period. We can do this by multiplying the ordinary annuity interest factor by (1 + i), which represents the additional period of interest earned on the payment made at the beginning of the period. Therefore, choice C is the best answer.

The Values Shown in Ordinary Annuity Tables (Either Present Value