Annuity Quiz

Recall the "Amount of an Annuity" formula

What does P represent in the "Amount of An Annuity" formula

• Number of payments per year

• Term of the annuity (in Years)

• Interest Rate

• Size of each payment

You want to deposit $2000 monthly in an IRA. With an interest rate of 10% compounded continuously per year. How much will you expect to have in 20 years?

• $1,719,060.65

• $1,533,373.46

• $719,160.62

• $809,061.38

Find the amount of an annuity if $400/month is paid into it for a period of 20yr earning an interest of 8%/year compounded continuously.

• $589,023.95

• $129,523.95

• $1,569,035.95

• $237,181.95

How much will you need to deposit annually if you want $2,000,000 by the time you retire. Assuming you start investing when you turn 22 and an interest rate of 7.5%.

• $5,963.37

• $3,458.20

• $3,253.28

• $6,411.48