You Have a Chance to Buy an Annuity That Pays

question 92

Multiple Choice

You have a chance to buy an annuity that pays $43,000 at the beginning of each year for 5 years.You could earn 4.5% on your money in other investments with equal risk.What is the most you should pay for the annuity?

• A) $197,263.61
• B) $215,017.33
• C) $185,427.79
• D) $244,606.87
• E) $209,099.42

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Definitions:

Crossing Over

A process during meiosis where homologous chromosomes exchange genetic material, enhancing genetic diversity.

Diploid Parent Cell

A cell that contains two complete sets of chromosomes, one from each parent, and is the precursor to gametes in sexual reproduction.

Double Division

A term often related to meiosis, the process by which cells divide to produce gametes (sex cells) involving two rounds of nuclear division resulting in four genetically distinct cells.

Trophoblast

A layer of cells forming the outer shell of a blastocyst, providing nutrients to the embryo and developing into a large part of the placenta.