Fill This Form To Receive Instant Help
Homework answers / question archive / You expect to retire in 40 years and save $5,000 at the end of each year until then
You expect to retire in 40 years and save $5,000 at the end of each year until then. Which formula would use you to determine how much will you have at retirement if your investments return 8% compounded annually?
A) FV of a lump-sum
B) PV of a lump-sum
C) FVAordinary annuity
D) FVAannuity due
When a person invests a fixed sum of money over fixed intervals, it is called an annuity
When the investment is made at the end of the period, it is termed as an ordinary annuity
Since we are concerned with knowing the future value of the account we would use the future value compounding factor
Correct choice C