$53$:$14$

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Multiple Choice $2$ points

Which of the following decisions would involve the use of the future value of an annuity?

You want to have $$1,000,000$ in order to retire at age $55,$ but need to know how much you will need to deposit each year from now until your $55$ th birthday.

Your father and mother wish to deposit enough money on the date of your high school graduation to enable you to take a $$7,000$ cruise when you graduate from college in $4$ years.

Your brother buys your car and offers to pay you $$500$ now or $$1,500$ in two years.

You win a lawsuit and are offered a lump$-$sum payment today of $$100,000$ or $$15,000$ a year for $20$ years.

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