1. To compute how much you would need to save each year for the next 25 years to allow you to withdraw $20,000.00 for the following 30 years, you would need to use the __________ .
future value of an annuity
present value of an annuity
both future and present value of an annuity
both present and future value of $1.00
2. Aaron wants to put $200.00 per month into an IRA account at 15% for four years. What is he solving for using his financial calculator?
present value
future value
interest rate
payment