INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 51

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-A straight life annuity payment option will result in the [highest | lowest] possible monthly payments to the annuitant.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Annuity

A financial product that provides a series of payments made at equal intervals, which can be used as a retirement income strategy.

Interest

Interest is the cost of borrowing money, typically expressed as an annual percentage rate, or the earnings from lending money.

Investments

Assets or items acquired with the goal of generating income or appreciation, including stocks, bonds, real estate, or business ventures.

Savings

Money set aside for future use, often stored in accounts that accrue interest over time, helping to protect against financial emergencies or to finance future purchases.