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

question 93

Multiple Choice

Your uncle is about to retire,and he wants to buy an annuity that will provide him with $75,000 of income a year for 20 years,with the first payment coming immediately.The going rate on such annuities is 5.25%.How much would it cost him to buy the annuity today?

• A)$ 825,835
• B)$ 869,300
• C)$ 915,052
• D)$ 963,213
• E)$1,011,374

Grasp the historical basis and impact of the gold standard on international financial systems.

Absorb the objectives and outcomes of the Bretton Woods agreement.

Understand the concept of production possibilities frontiers and how they illustrate the choices and trade-offs facing an economy.

Grasp the principle of comparative advantage and how it underpins the benefits of specialization and trade.

---

Definitions:

Lithium

The lightest of the solid elements in the periodic table of elements, widely used to treat bipolar disorder.

Bipolar Disorder

Mood disorder characterized by extreme mood swings that include one or more episodes of mania, an overexcited, unrealistically optimistic state.

Panic Attacks

Sudden and intense episodes of fear or anxiety, often accompanied by physical symptoms like rapid heartbeat and shortness of breath.

Major Depression

A disorder affecting mental well-being, characterized by enduring low spirits or diminished interest in activities, severely impacting daily routines.