Using the Time Value of Money charts provided,answer the following question.(Note to Instructors: Provide the appropriate tables to students from Personal Finance,Sixth Edition,Appendix C: Financial Tables.) Judy would like to have $200,000 saved in her retirement account in 20 years.Assuming an interest rate of 10%,how much should she contribute each year?
A) $3,491.92
B) $2,000.00
C) $2,576.11
D) $4,376.77

Question

Quizplus · Accepted Answer

Using the future value of an annuity formula or table, you can determine the annual contribution needed to reach a future value of $200,000 in 20 years at a 10% interest rate. The correct annual contribution is $3,491.92.

Using the Time Value of Money Charts Provided,answer the Following