Using the table approach, the future amount of an annuity due may be calculated by finding the table factor for the future amount of an ordinary annuity of
A) n + 1 and then subtract 1.
B) n + 1 and then add 1.
C) n - 1 and then add 1.
D) n - 1 and then subtract 1.

Question

Quizplus · Accepted Answer

For an annuity due, the future value is calculated by using the table factor for an ordinary annuity for n + 1 periods and then subtracting 1 to adjust for the immediate payment at the start of the period.

Using the Table Approach, the Future Amount of an Annuity