I'm in the annuity section of accounting.  With the 6 tables the Spiceland book provides (listed below):FV of $1PV of $1FV of an Ordinary Annuity of $1PV of an Ordinary Annuity of $1FV of an Annuity Due of $1PV of an Annuity Due of $1How do I know which table to use? I'm very confused when to which...Thank you for your help!!

Question
Asked Jun 23, 2019
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I'm in the annuity section of accounting.  With the 6 tables the Spiceland book provides (listed below):

  • FV of $1
  • PV of $1
  • FV of an Ordinary Annuity of $1
  • PV of an Ordinary Annuity of $1
  • FV of an Annuity Due of $1
  • PV of an Annuity Due of $1

How do I know which table to use? I'm very confused when to which...

Thank you for your help!!

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Expert Answer

Step 1

FV of $1: This table is used to calculate the future value of a current investment that will grow over time.

 

PV of $1: This table is used to calculate the present value of the future investment.

Step 2

FV of an ordinary annuity of $1: This table is used to calculate the future value annuity of investments when the payments are made at the end of the period

 

PV of an ordinary annuity of $1: This table is used to calculate th...

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