You Just Inherited Some Money,and a Broker Offers to Sell

question 24

Multiple Choice

You just inherited some money,and a broker offers to sell you an annuity that pays $5,000 at the end of each year for 20 years.You could earn 5% on your money in other investments with equal risk.What is the most you should pay for the annuity?

• A)$50,753
• B)$53,424
• C)$56,236
• D)$59,195
• E)$62,311

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Definitions:

Urine Volume

The amount of urine excreted by the kidneys over a given time period, an indicator of kidney function and fluid balance.

Posterior Pituitary

The back part of the pituitary gland that stores and releases hormones produced by the hypothalamus, such as vasopressin and oxytocin.

Embryonic Origin

Refers to the developmental source of tissues and organs in an embryo, guiding the formation of the organism's body plan.

Nervous Tissue

A class of tissue comprised of neurons and supporting cells that specializes in communication throughout the body.