5 Find the Value of an Annuity

question 211

Multiple Choice

5 Find the Value of an Annuity
Solve the problem. Round to the nearest dollar if needed.
-Looking ahead to retirement, you sign up for automatic savings in a fixed-income 401K plan that pays 7% per year compounded annually. You plan to invest $3000 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)$189,747
• B)$191,517
• C)$188,204
• D)$191,045

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Definitions:

SWOT Analysis

A strategic planning tool that evaluates the Strengths, Weaknesses, Opportunities, and Threats of an organization or project.

Opportunity Costs

The lost potential gain from other options when one option is chosen.

Nonmonetary Costs

Costs not easily quantified in monetary terms, including time, effort, and emotional investment made by consumers in association with a purchase.

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