The contract required 8 equal annual payments with the


On June 1, 2012, Pitts Company sold some equipment to Gannon Company. The two companies entered into an installment sales contract at a rate of 8%. The contract required 8 equal annual payments with the first payment due on June 1, 2012. What type of compound interest table is appropriate for this situation?

A) Present value of an annuity due of 1 table.

B) Present value of an ordinary annuity of 1 table.

C) Future amount of an ordinary annuity of 1 table.

D) Future amount of 1 table.

 

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Accounting Basics: The contract required 8 equal annual payments with the
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