Can anyone answer this question?
I was asked by someone else what the answer to this is, and I could guess would prefer someone with some actual knowledge could give an answer. (No, this isn't my homework, but asked on ask.com.)
Betty wants to know how much she should begin saving each month to fund her retirement. What kind of problem is this?
A) Present value of one.
B) Future value of an ordinary annuity.
C) Present value of an ordinary.
D) Future value of one.
Thanks!
= new reply since forum marked as read
But then, I never took the CFP exam.
Figuring out how much it's going to take to fund a retirement is at its core, at least as far as I see it, an annuity question.
That is to say, how much of a lump sum, given a specific rate of return, will it take to distribute a given amount for either a specific number of years (A "Period Certain Annuity"
or until death.
