An annual contribution of $3,000 to a retirement account that earns 6 percent will be worth approximately _____ in 20 years.(Use the table of future value annuity factors or a financial calculator.Round off to the nearest tens place.)
A)$60,000
B)$96,780
C)$100,000
D)$110,360
E)$192,600

Question

Quizplus · Accepted Answer

Using a financial calculator or future value annuity factor table, we can determine that the future value of an annual contribution of $3,000 for 20 years at a 6% interest rate is approximately $110,360. Therefore, the best choice is D.

An Annual Contribution of $3,000 to a Retirement Account That