Natasha, Age 58, Purchases an Annuity for $40,000

question 726

Multiple Choice

Natasha, age 58, purchases an annuity for $40,000. Natasha will receive $400 per month for the rest of her life. The expected return multiple is 20.0. At age 65, the amount that Natasha may exclude from income is

• A) $0.
• B) $2,800.
• C) $4,000.
• D) $2,000.

---

Definitions:

Imagery

Visual or descriptive language in literature that appeals to the senses, creating a mental image.

Encoding Information

Encoding information refers to the process of converting sensory input into a form that can be stored and recalled from the brain's memory.

Anterograde Amnesia

A condition where new events cannot be stored in long-term memory, leading to a loss of the ability to create new memories after the event that caused amnesia.

Long-Term Memories

Are memories that can last from a few days to a whole lifetime, holding information about past experiences, knowledge, and skills.