For each of the following situations in A through D, indicate the abbreviation of the table that should be used to solve for the solution requested.Place the abbreviation of the respective table in the space provided.You may use each table more than once or not at all.
-How much would an investor deposit today in order to withdraw $12,000 at the beginning of each of the next four years, assuming that the first payment is withdrawn one year from today?
A) PVOA Present value of an ordinary annuity
B) PVAD Present value of an annuity due
C) PV Present value of a sum
D) FVOA Future value of an ordinary annuity
E) FVAD Future value of an annuity due
F) FV Future value of a sum

Question

Quizplus · Accepted Answer

The situation describes a series of equal payments at the end of each period, which is characteristic of an ordinary annuity. Therefore, the Present Value of an Ordinary Annuity (PVOA) table should be used.

For Each of the Following Situations in a Through D