Textbook Problem

An accountant wishes to find the present value of an annuity of $1 payable at the beginning of each period at 10% for 8 periods. He has only one present value table, which shows the present value of an annuity of $1 payable at the end of each period. To compute the present value factor he needs, the accountant would use the present value factor in the 10% column for:

1. a. 7 periods
2. b. 7 periods and add 1
3. c. 8 periods
4. d. 9 periods and subtract 1