You have established an annuity plan that will accumulate to $50,000 in 10 years by investing $100 a month. If you instead invest $200 a month, what would your annuity accumulate?
A) more than $160,000
B) $150,000
C) $100,000
D) less than $90,000

Question

Quizplus · Accepted Answer

Doubling the monthly investment from $100 to $200 effectively doubles the future value of the annuity, making it $100,000. This is because the future value of an annuity is directly proportional to the periodic payment amount, assuming the interest rate and the number of periods remain constant.

You Have Established an Annuity Plan That Will Accumulate to $50,000