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

question 88

Multiple Choice

How much would you have to invest each quarter in an annuity earning 5% quarterly to earn $20,000 at the end of 20 years?

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

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Definitions:

Tax Treatment

Refers to the method or rules applied in determining how an item or situation is taxed, affecting the financial outcome.

Rental Income

Income received from renting out property, such as houses or apartments, which is subject to tax.

Gross Income

The total income from all sources before any deductions or taxes are applied.

Net Income

The total earnings of a person or company after all expenses and taxes have been subtracted from total revenue.