Thomas Purchased an Annuity for $20,000 That Will Pay Him

question 16

Multiple Choice

Thomas purchased an annuity for $20,000 that will pay him $500 per month for ten years.What amount should Thomas include in his income each year?

• A)$0
• B)$2,000
• C)$4,000
• D)$6,000

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Definitions:

Psychological Phenomena

Events, processes, or situations that involve the mind and mental processes, encompassing a wide range of concepts including perception, cognition, emotion, and behavior.

Entirety

The state of being whole or undivided; the full amount or extent of something.

Empiricism

A philosophical standpoint emphasizing that knowledge comes primarily from sensory experience.

John Locke

John Locke was a 17th-century English philosopher and physician, widely recognized as one of the most influential Enlightenment thinkers, particularly regarding his theories of mind, identity, and empiricism.