Jim Wants to Invest $5,000 a Year for the Next

Multiple Choice

Jim wants to invest $5,000 a year for the next 25 years to prepare for his retirement. If he wants to calculate the value of his investment at the end of the 25 year period, which of the following tables would be the best for him to use?

A) Present Value of $1
B) Present Value of an Annuity of $1
C) Future Value of $1
D) Future Value of an Annuity of $1