Your Father Is About to Retire,and He Wants to Buy

question 52

Multiple Choice

Your father is about to retire,and he wants to buy an annuity that will provide him with $85,000 of income a year for 25 years,with the first payment coming immediately.The going rate on such annuities is 5.15%.How much would it cost him to buy the annuity today?

• A)$1,063,968
• B)$1,119,966
• C)$1,178,912
• D)$1,240,960
• E)$1,303,008

---

Definitions:

Preoperationalism

A stage in child cognitive development where children from about 2 to 7 years old engage in symbolic play and struggle with logic and taking the perspective of others.

Concrete Operational

A stage in Piaget's theory of cognitive development during which children gain the abilities of logical thought about concrete events, understanding the concepts of conservation, and the ability to classify and serial order.

Preoperational

A stage in Jean Piaget’s theory of cognitive development during which children from about 2 to 7 years old develop memory and imagination, but are not yet able to perform operations (logical reasoning tasks).

Sensorimotor

A developmental stage in early childhood where learning occurs through interacting with the environment using basic motor and sensory skills.