To Compute How Much You Would Need to Save Each

question 74

Multiple Choice

To compute how much you would need to save each year for the next 25 years to allow you to withdraw $20,000 for the following 30 years,you would need to use the

• A)Future Value of an annuity.
• B)Present Value of an annuity.
• C)both Future and Present Value of an annuity.
• D)both Present and Future Value of $1.

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Definitions:

Valid Consideration

Something of value (cash, services, goods, etc.) that is exchanged between parties in a contract, making the contract legally binding.

Preexisting Duty Rule

in contract law, states that an agreement to perform an act already legally obligated to is not sufficient consideration for a new promise.

Negative Information

Adverse details or data that can impact an individual or entity's reputation or creditworthiness.

Breach Of Contract

The failure to fulfill the terms or conditions of a contract without a lawful excuse.