Discussion
Five annual deposits are made and the series compound amount factor applied. The accumulated sum obtained belongs at the date of
Answer: D
Correct answer: the fifth deposit
The series compound amount factor accumulates the deposits to the date of the last one, not to a period beyond it. So five annual deposits give a sum located at the fifth deposit, with no interest earned on that final deposit. Placing it a year later is the mirror image of the mistake made with the present worth factor.
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