An Uncle of Yours Who Is About to Retire Wants

question 140

Multiple Choice

An uncle of yours who is about to retire wants to sell some of his stock and buy an annuity that will provide him 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 him 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:

IR

Infrared spectroscopy, a technique used to identify and study chemicals through the absorption of light in the infrared spectrum.

NMR

Nuclear Magnetic Resonance, a spectroscopic technique that exploits the magnetic properties of certain nuclei to determine the structure of compounds.

Molecular Formula

A notation representing the number and type of atoms in a molecule without depicting the bonds (e.g., H2O for water).

IR

Infrared spectroscopy, a technique used to identify and study chemicals through the absorption of infrared radiation, providing insights into molecular vibrations and structures.