$1000*12*20 = $240,000. Is the cost to buy the annuity (Present Value) MORE or LESS than $240,000?
And explain why in a sentence or two (you can assume at 6% interest rate if you like).
2. Suppose you invest $1000 every month for 20 years. The total paid in is $1000*12*20 = $240,000. Is the
balance in the account after 20 years (Future Value) MORE or LESS than $240,000? And explain why
in a sentence or two (you can assume at 6% interest rate if you like).
3. Suppose you want to have $900,000 in your retirement account in 50 years (600 months).