Which financial math approach would you use to analyze a gym membership of $45 per month, paid at the beginning of each month for one year?
A) Present Value of a Lump Sum
B) Present Value of an Annuity Due
C) Present Value of an Ordinary Annuity

Question

Quizplus · Accepted Answer

Payments made at the beginning of each period, such as the monthly gym membership fee in this scenario, are best analyzed using the Present Value of an Annuity Due approach. This method accounts for the payment timing accurately.

Which Financial Math Approach Would You Use to Analyze a Gym