Because Your Mother Is About to Retire, She Wants to Buy

question 50

Multiple Choice

Because your mother is about to retire, she wants to buy an annuity that will provide her 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 her to buy the annuity today?

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

Understand the purposes and components of family assessment.

Understand the design rules and principles for effective PowerPoint presentations.

Recognize different types of support in presentations and their purposes.

Comprehend the role and impact of visual aids in enhancing presentations.

---

Definitions:

Portfolio of Stocks

A collection of stocks held by an individual or an institution.

Seasoned Equity Offering

The process by which a publicly-traded company issues additional shares of stock to raise capital, typically after the initial public offering.

Initial Public Offering

The first time that the stock of a private company is offered to the public.

Secondary-market Transaction

The buying and selling of previously issued securities, such as stocks and bonds, among investors without involving the issuing companies.