Basim Purchased a Deferred Annuity from an Insurance Company for $10

question 154

Multiple Choice

Basim purchased a deferred annuity from an insurance company for $10 971. The money used to purchase the annuity will earn 6% quarterly. The annuity will provide 16 quarterly payments of $1000. If the first payment is to be received on October 1, 2017, when did Basim purchase the deferred annuity?

• A) April 1, 2011
• B) April 1, 2013
• C) October 1, 2017
• D) October 1, 2013
• E) June 1, 2014