How Much Will It Cost Shaun to Purchase a Two-Level

question 2

Multiple Choice

How much will it cost Shaun to purchase a two-level retirement annuity that will pay $6000 at the end of each month for the first 10 years, and $9000 per month for the next 15 years? The payments represent a rate of return to Shaun of 6% compounded monthly.

• A) $1 066 532
• B) $586 201
• C) $540 441
• D) $1 126 642
• E) $2 193 174