Charlie Stone wants to retire in 30 years, and he wants to have an annuity of $1,000 a year for 20 years after retirement. Charlie wants to receive the first annuity payment at the end of the 30th year. Using an interest rate of 10%,

how much must Charlie invest today in order to have his retirement annuity (round to the nearest $10)?
A) $500
B) $490
C) $540
D) $570


Answer: C

Business

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