Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 17

Assume you bought a car using a loan that requires payments of $3,000 to be made at the end of every year for the next three years. The loan agreement indicates the annual interest rate is 6 percent. Which table in this appendix would you use to calculate the car's equivalent cost if you were to pay for it in full today
A) Table C.1 (Future Value of $1)
B) Table C.2 (Present Value of $1)
C) Table C.3 (Future Value of Annuity of $1)
D) Table C.4 (Present Value of Annuity of $1)