How Much Would You Have to Invest Each Month in an Annuity

question 19

Multiple Choice

How much would you have to invest each month in an annuity earning 5% monthly to earn $5000 at the end of 18 years?

• A) $14.32
• B) $36.05
• C) $39.82
• D) $40.26

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Definitions:

High Leg

In electrical systems, a conductor within a delta configuration that carries higher voltage to ground than the other conductors.

Center Tapped Transformer

A transformer with a connection point (tap) in the middle of the secondary winding, which allows for splitting the output voltage into two parts, each half of the full voltage.

Voltage

An electrical measurement that represents the difference in electric potential energy between two points in a circuit.

Ladies Association

Women's groups, often historical, dedicated to philanthropy, social reform, or supporting a particular cause or community need through volunteerism and fundraising.