You are considering investing in a retirement fund that requires you to deposit $5,000 per year, and you want to know how much the fund will be worth when you retire. What financial technique should you use to calculate this value?
A) Future value of a single payment
B) Future value of an annuity
C) Present value of an annuity
D) None of the above

Question

Quizplus · Accepted Answer

The given scenario involves making regular deposits (annuity) of a certain amount towards a retirement fund to accumulate a larger sum of money in the future. Hence, the best financial technique to calculate the future value in such a scenario is the Future Value of an Annuity.

You Are Considering Investing in a Retirement Fund That Requires