Your Insurance Agent Is Trying to Sell You an Annuity

question 70

Multiple Choice

Your insurance agent is trying to sell you an annuity that costs $165,000 today. By buying this annuity, your agent promises that you will receive payments of $775 a month for the next 40 years. What is the rate of return on this investment?

• A) 4.28%
• B) 4.39%
• C) 4.52%
• D) 4.67%
• E) 4.81%

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Definitions:

Behavioral Models

Theories or frameworks that explain how and why people behave the way they do, often used in psychology and organizational behavior.

Leadership

The ability to guide, inspire, and influence people toward achieving a common goal.

Importance of Commitment

Refers to the significance of dedication and loyalty from individuals or groups toward tasks, goals, or relationships for achieving success and maintaining cohesion.

Subordinate Commitment

Refers to the loyalty, dedication, and engagement that employees exhibit towards their leaders or the organization.