Charlie Stone Wants to Retire in 30 Years, and He

question 23

Multiple Choice

Charlie Stone wants to retire in 30 years, and he wants to have an annuity of $1,000 a year for 20 years after retirement. Charlie wants to receive the first annuity payment at the end of the 30th year. Using an interest rate of 10%, how much must Charlie invest today in order to have his retirement annuity (round to the nearest $10) ?

• A) $500
• B) $490
• C) $540
• D) $570