Assume That You Own an Annuity That Will Pay You

question 99

Multiple Choice

Assume that you own an annuity that will pay you $15,000 per year for 12 years,with the first payment being made today.You need money today to start a new business,and your uncle offers to give you $120,000 for the annuity.If you sell it,what rate of return would your uncle earn on his investment?

• A)6.85%
• B)7.21%
• C)7.59%
• D)7.99%
• E)8.41%

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Definitions:

Biological Differentiation

The process through which cells become specialized in structure and function during the development of an organism.

Cultural Meanings

The significance or interpretations that are ascribed to objects, events, or practices within a particular culture or social group.

Sex

denotes the biological differences between male and female organisms, particularly concerning reproductive functions.

Symbols

Objects or figures that represent or stand for an idea, belief, or action, serving as a means of communication that conveys meaning beyond their literal sense.