You have set a $100,000 goal for a college funds for your newborn child.You plan on having a fixed amount taken from your salary each month to meet this goal.The calculation to determine the monthly amount is called
A) planning and budgeting.
B) present value of an annuity.
C) future value of an annuity.
D) future value of a series of single payments.

Question

Quizplus · Accepted Answer

The calculation to determine the monthly amount needed to reach a future financial goal, like a college fund, is called the future value of an annuity. This involves calculating how much needs to be saved regularly to reach a specific future sum.

You Have Set a $100,000 Goal for a College Funds