An individual is planning to set-up an education fund for his grandchildren.He plans to invest $10,000 annually at the end of each year.He expects to withdraw money from the fund at the end of 10 years and expects to earn an annual return of 8%.What will be the total value of the fund at the end of 10 years? (PV of $1,FV of $1,PVA of $1,and FVA of $1) $\bold{\text{(Use appropriate factor(s) from the tables provided.) }}$

A) $46,320
B) $67,107
C) $100,000
D) $144,866
E) $215,890

Question

An individual is planning to set-up an education fund for his grandchildren.He plans to invest $10,000 annually at the end of each year.He expects to withdraw money from the fund at the end of 10 years and expects to earn an annual return of 8%.What will be the total value of the fund at the end of 10 years? (PV of $1,FV of $1,PVA of $1,and FVA of $1)

\bold{\text{(Use appropriate factor(s) from the tables provided.) }}

A) $46,320
B) $67,107
C) $100,000
D) $144,866
E) $215,890

Hanish Sharma · Accepted Answer

Final Answer : D, Explanation :  The total value of the fund at the end of 10 years can be calculated using the Future Value of an Annuity (FVA) formula, given the annual investment, interest rate, and period. The correct calculation leads to the option D value.

Definitions

Learning Objectives

Learning Objectives

Related questions