Annuities

You make $500 monthly payments into an annuity that earns 4% annual interest that is compounded monthly. If you are calculating how much this annuity will be worth in 10 years, which equation would you use?

• Desired Periodic Payment

• Future Value

• Sinking Funds

• Present Value

You have $750,000 in your 401(k) and want to find out if you have enough money to retire. You have estimated that you need to withdraw $6,000 quarterly for the next 20 years. Which equation will you use to answer this problem?

• Desired Periodic Payment

• Future Value

• Sinking Funds

• Present Value

Tags

CCSS.8.EE.C.7B

This is the phase of an annuity in which money is withdrawn, the remaining money in the annuity will still earn interest in this phase.

• Accumulation

• Liquidation

• Sinking Fund

• Withdrawal Period

You would like to retire in 35 years with $2,000,000 but do not know how much you need to save every month. You found an annuity that gives you 5% interest that is compounded monthly. What equation will you use to answer this question?

• Desired Periodic Payment

• Future Value

• Sinking Funds

• Present Value

You are saving up for your daughters wedding which is still a few years out. You have estimated that you will need $20,000 and have found a sinking fund that offers 4% annual interest that is compounded monthly. Which equation will you use to calculate how much you must save each month to have $20,000 three years from now.

• Desired Periodic Payment

• Future Value

• You Mad Bro

• Present Value

You made monthly payments of $400 into an annuity for 12 years and the annuity has a balance of $80,730.00 Calculate the total interest on the annuity.

• $57,600

• $23,130

• $36,490

• $9,742

Tags

CCSS.HSF.BF.A.2

Which type of annuity allows you to invest money post tax, and then you withdraw money tax-free in retirement?

• 403(b)

• 401(k)

• Roth IRA

• Traditional IRA

You can invest in these accounts with your money prior it to being taxed, however you will pay tax when you withdraw the money in retirement

• 401K

• Roth IRA

• 403b

• Traditional IRA

This is a retirement account in which pre-taxed money is invested, it is offered to you by your employer if you work for a private company.

• 401k

• 403b

• Pension

• Roth IRA

This is a retirement account in which you run, meaning you have complete choice over how your money is invested

• Traditional IRA
• Roth IRA
• 401k

• 403b