You want to have $50,000 in a savings account 8 years from today and you are going to make payments every month to achieve this goal.To determine the amount of monthly payments you have to make starting today you will need to use which of the following?
A)present value of an annuity of $1 per period
B)future value of an annuity of $1 per period
C)present value of the amount of $1
D)future value of the amount of $1

Question

Quizplus · Accepted Answer

To achieve a future goal of having $50,000 in a savings account by making monthly payments, you need to calculate the future value of an annuity. This calculation helps determine how much you need to save each month (with a fixed interest rate) to reach your target amount in the specified time frame.

You Want to Have $50,000 in a Savings Account 8