The solution to this problem requires time value of money calculations. Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. The table factor for the future value of an annuity for 4 annual deposits at 8% is
A) the cumulative total of the future value of $1 factors for 4 deposits at 8%.
B) the reciprocal of the future value of $1 factor for n = 4 and 8%.
C) the same as for the future value of $1 multiplied by 4.
D) the same as using the future value of $1 factors at 8% for 3, 2, 1 and 0 periods.

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The Answer of The solution to this problem requires time value of money calculations. Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. The table factor for the future value of an annuity for 4 annual deposits at 8% is
A) the cumulative total of the future value of $1 factors for 4 deposits at 8%.
B) the reciprocal of the future value of $1 factor for n = 4 and 8%.
C) the same as for the future value of $1 multiplied by 4.
D) the same as using the future value of $1 factors at 8% for 3, 2, 1 and 0 periods.

The Solution to This Problem Requires Time Value of Money