Panton Corporation sold three pieces of equipment to the Yarol Company on December $1,2020.$ Both companies agreed on a

predetermined interest rate, and entered into an installment sales contract. The companies agreed that four equal annual payments

would be made, the first of which would be due on the date of sale. The most appropriate present value concept for this situation will

be

future amount of $1$ for four periods.

present value of an annuity due of $1$ for four periods.

future amount of an annuity due of $1$ for four periods.

present value of an ordinary annuity of $1$ for four periods.