Your Aunt Is About to Retire,and She Wants to Sell

question 141

Multiple Choice

Your aunt is about to retire,and she wants to sell some of her stock and buy an annuity that will provide her with income of $50,000 per year for 30 years,beginning a year from today.The going rate on such annuities is 7.25%.How much would it cost her to buy such an annuity today?

• A)$574,924
• B)$605,183
• C)$635,442
• D)$667,214
• E)$700,575

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Definitions:

Detection of Sensations

The process by which sensory receptors and the nervous system receive and interpret stimuli from the environment.

Intermodal Perception

The combination and organization of data from various senses, like vision and hearing, to form a cohesive understanding.

Visual Tracking

The capability to visually follow a moving object smoothly and continuously.

Dishabituation

The process of responding to an old stimulus as if it were new again after a change in context or presentation, demonstrating the renewal of attention.