Chad is setting up a retirement fund,and he plans on depositing $5,000 per year in an investment that will pay 7% annual interest.How long will it take him to reach his retirement goal of $69,080?
A)13.816 years
B)0.072 years
C)10 years
D)20 years
E)5 years

Question

Quizplus · Accepted Answer

Future Value of an Annuity = Annuity * Interest Factor
$69,080 = $5,000 * Interest Factor; Interest Factor = 13.816
13.816 is the interest factor on the Future Value of an Annuity table; i= 7%; n = 10
Short Essay Questions

Chad Is Setting Up a Retirement Fund,and He Plans on Depositing