An annuity Fill in the blank, is an equal payment paid or received at the beginning of each period for a specified number of periods.

Your financial advisor is suggesting you purchase a savings bond for your portfolio. If the bond has a maturity of $1,000 in 18 years, but pays no interest, approximately how much is that bond worth to you today? Assume you require a rate of return of 6%.

• A. $350
• B. $1,000
• C. $0
• D. $1,060

If you are 25 years old and start putting $2,000 per year into a retirement account; approximately how much will you have in the account in 30 years if you can earn an 8% return?

• A. $345,900
• B. $226,560
• C. $164,810
• D. $314,770