James is wondering how much money he needs to have to receive an annuity payment of $10,000 per month for 30 years, after which time the payments will stop and his investment will be used up. James believes he can earn 6% on his investments. How many TVM inputs does James need to solve this problem?

Question

Gerald Dickerson

Business

25 June, 05:42

James is wondering how much money he needs to have to receive an annuity payment of $10,000 per month for 30 years, after which time the payments will stop and his investment will be used up. James believes he can earn 6% on his investments. How many TVM inputs does James need to solve this problem?

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Answers (1)

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Ashlyn Schaefer · Answer 1

Three inputs (the interest rate, and time period, and payment amount)

Explanation:

For computing how much money is required we have to consider the three TVM inputs i. e time period or number of years, interest rate and the payment amount

By considering the three TVM inputs, the possibility of the correct answer would be high plus only this three TVM inputs are required

Here, TVM = Times value of money