You Have Established an Annuity Plan That Will Accumulate to $30,000

question 80

Multiple Choice

You have established an annuity plan that will accumulate to $30,000 in 10 years by investing $100 a month. If you instead invest $200 a month, what would your annuity accumulate?

• A) $50,000
• B) $60,000
• C) more than $70,000
• D) less than $45,000

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Definitions:

Contribution Margin

The revenue remaining after subtracting variable costs, which can then be used to cover fixed expenses and provide profit.

Incremental Manufacturing Cost

The additional cost associated with manufacturing one more unit of a product, encompassing additional materials, labor, and overhead costs.

Fixed Cost

Costs that remain unchanged regardless of the level of production or sales activities within a certain range and period.

Variable Cost

Costs that vary directly with the level of production or service, such as materials and labor.