4
QuizMultiple Choice

Annuities

Question 4 • FT GMS AMDM B IC – 72

As part of your retirement plan, you want to set up an annuity in which a regular payment of $35,000 is made at the end of each year. You need to determine how much money must be deposited earning 6% compounded annually in order to make the annuity payment for 20 years.a.$391,125.87c.$397,502.32b.$395,083.12d.$401,447.24

Answer
A
A
B
B
C
C
D
D
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As part of your retirement plan, you want to set…