Use the Following Information for Questions

Multiple Choice

Use the following information for questions
Mary needs $145,000 in 15 years to buy her son a new Ferrari. Assume that she can earn an 8% after-tax return on her investment. You may ignore inflation in these calculations.
- If you calculate "Future Value of an Annuity":

A) You know the total value of this fund at the end of the annuity period
B) You know the present value of a series of future payments
C) You can determine how long a sum of money would last if you withdrew a fixed sum on a regular basis
D) You know the total value of the fund at the end of the specified period even if you don't know the interest rate
E) You can determine the outcome even when the payments vary from year to year