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

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Definitions:

Defence Mechanisms

Psychological strategies used by individuals to cope with reality and protect their ego by unconsciously denying or distorting reality.

Short-term Stress Reduction

Temporary methods or techniques used to decrease stress and enhance well-being.

Voluntary Certification

An optional credentialing process by which individuals or organizations seek official recognition of their skills and competencies in various fields.

Work-life Balance

The equilibrium between professional duties and personal activities, aiming for fulfillment in both areas without significant conflict.