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.
-If interest rates are compounded semi-annually, how much will a company accumulate in three years after making six equal semi-annual payments of $15,000 each? The first payment will be made 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 correct table to use is the Future Value of an Annuity Due (FVAD) because the payments are made at the beginning of each period, and the question asks for the future value of these payments.

For Each of the Following Situations in a Through D