Shah Sets Aside $2,000 Each Year for Five Years

Multiple Choice

Shah sets aside $2,000 each year for five years. After five years, he then withdraws the funds on an equal annual basis for the next four years. If Shah wishes to determine the amount of the annuity to be withdrawn in years 6 through 9, he should use the following two tables in this order:

A) present value of an annuity of $1; future value of an annuity of $1
B) future value of an annuity of $1; present value of an annuity of $1
C) future value of an annuity of $1; present value of $1
D) future value of an annuity of $1; future value of $1