You have established an annuity plan that will accumulate to $30,000 in 10 years by investing $100 a month. If you instead invest $200 a month, what would your annuity accumulate?
A) $50,000
B) $60,000
C) more than $70,000
D) less than $45,000

Question

Quizplus · Accepted Answer

Doubling the amount invested per month from $100 to $200 will increase the accumulation at the end of 10 years by a factor of two. Therefore, the new accumulation will be $30,000 x 2 = $60,000. Choice B is the only option that matches this new accumulation amount.

You Have Established an Annuity Plan That Will Accumulate to $30,000