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:

Net Wealth

The total assets owned by individuals, businesses, or nations, minus any liabilities owed.

Consumption

The total amount of goods and services consumed by households and individuals in an economy.

Consumption Function

An economic formula that depicts the relationship between total consumption and gross national income, indicating how income affects spending.

Future Expectations

Anticipations or predictions about the economy or financial markets based on current events or trends that can influence consumer and investor behaviors.