Find the Value of an Annuity

question 275

Multiple Choice

Find the Value of an Annuity
-Looking ahead to retirement, you sign up for automatic savings in a fixed-income 401K plan that pays 5.5% per year compounded annually. You plan to invest $2000 at the end of each year for the next 25 years. How much will your account have in it at the end of 25 years?

• A) $102,305
• B) $104,075
• C) $100,762
• D) $103,603

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Definitions:

Military Branch

A division of a nation's armed forces responsible for a specific type of military operations, such as army, navy, or air force.

U.S. Air Corps

The aerial warfare service component of the United States Army prior to the creation of the United States Air Force.

Feelings

Subjective experiences associated with mood, emotions, or sensations, often described based on personal perceptions of events or interactions.

Experiences

Events or occurrences that leave an impression on someone, contributing to their knowledge or development.