refer to the cash flow diagram and answer the following question\nthe future worth f is equal to\na. a(f/a…

Explanation:

Step1: Recall future - worth factor formula

The future - worth factor for an equal - payment series (uniform series) is given by $(F/A, i%, n)=\frac{(1 + i)^n-1}{i}$, where $A$ is the annual payment, $F$ is the future worth, $i$ is the interest rate per period, and $n$ is the number of periods.

Step2: Analyze the cash - flow diagram

In the given cash - flow diagram, the equal annual payments $A$ start from the end of period 1 and end at the end of period 4. The number of equal payments $n = 4$. The future - worth $F$ of an equal - payment series of $n$ payments $A$ is calculated using the formula $F=A(F/A, i%, n)$. Here, $n = 4$. So, $F = A(F/A, i%, 4)$.

Answer:

A. A(F/A, i%, 4)