Now That Your Uncle Has Decided to Retire, He Wants

question 24

Multiple Choice

Now that your uncle has decided to retire, he wants to buy an annuity that will provide him with $85,000 of income a year for 25 years, with the first payment coming immediately.The going rate on such annuities is 5.15%.How much would it cost him to buy the annuity today?

• A) $1,063,968
• B) $1,119,966
• C) $1,178,912
• D) $1,240,960
• E) $1,303,008

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Definitions:

Safety and Security

Fundamental needs in Maslow's hierarchy, representing the necessity for protection from physical harm and assurance of psychological well-being.

Neurotic Adults

Adults who exhibit chronic patterns of emotional instability, anxiety, or other psychological symptoms without evidence of psychosis.

Self-actualizers

Individuals who have realized their potential and seek personal growth and fulfillment, often seen as the pinnacle in Maslow's hierarchy of needs.

Maslow's Perspective

An approach to understanding human motivation and behavior that emphasizes a hierarchy of needs, from basic physiological needs to self-actualization.