Find the Future Value of the Annuity

question 230

Multiple Choice

Find the future value of the annuity.
-To save for retirement, you decide to deposit $2250 into an IRA at the end of each year for the next 40 years. If the interest rate is 2% per year compounded annually, find the value of the IRA,
Rounded to the nearest dollar, after 40 years.

• A) $301,714
• B) $135,904
• C) $131,034
• D) $2718

---

Definitions:

Experience

encompasses the knowledge or practical wisdom gained from what one has observed, encountered, or undergone in life or in a particular field.

Sustainability

A commitment to a lifestyle that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Marketing Mix

A set of controllable, tactical marketing tools that a company uses to produce a desired response from its target market; traditionally includes product, price, place, and promotion (the 4Ps).

Forecast Potential

The anticipated performance or success of a product, service, or business within a specific period.