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

question 4

Multiple Choice

How much would you have to invest each month in an annuity earning 6.5% monthly to earn $30,000 at the end of 15 years?

• A) $84.77
• B) $98.83
• C) $146.93
• D) $152.15

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Definitions:

Marginal Revenue

The extra revenue generated from the sale of an additional unit of a product or service.

MC = MR

The condition where a firm's marginal cost equals its marginal revenue, often used to determine the optimal level of production.

Profit Maximized

The point at which a firm achieves the highest profit possible, given its production costs and the market price of its goods or services.

Marginal Revenue

Additional revenue earned from the sale of one more unit of a good or service.