The Solution to This Problem Requires Time Value of Money

Multiple Choice

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.
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The table factor for the future value of an annuity for four annual deposits at 8% is

A) the same as for the future value of $1 multiplied by 4.
B) the reciprocal of the future value of $1 factor for n = 4 and 8%.
C) the cumulative total of the future value of $1 factors for four deposits at 8%.
D) the same as using the future value of $1 factors at 8% for 3,2,1,and 0 periods.