Solve the problem. Round to the nearest cent.
-Joan wants to have $250,000 when she retires in 25 years. How much should she invest annually in Her annuity to do this if the interest is 7% compounded annually?
A) $7010.57
B) $3000.71
C) $3952.63
D) $8998.99

Question

Quizplus · Accepted Answer

To find the annual investment, use the future value of an annuity formula: FV = Pmt * [(1 + r)^n - 1] / r. Here, FV = $250,000, r = 0.07, n = 25. Solving for Pmt gives approximately $3952.63.

Solve the Problem. Round to the Nearest Cent