Julie has just completed the rigorous process of becoming a Certified Financial

Question

Julie has just completed the rigorous process of becoming a Certified Financial Planner (CFP). She is looking forward to working with individuals on saving for retirement. She would like to show her clients the value of an annuity program as one of the best options for investing current earnings in a tax-deferred account.

If a client puts the equivalent of $55 per month, or $660 per year, into an ordinary annuity, how much money would accumulate in 20 years at 3% compounded annually?

Answer:

Thank you!

Explanation / Answer

A= R[(1+i)^n-1]/i A= 660[(1.03)^20-1]/.03= 17,734.45

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.