Your Uncle Is About to Retire,and He Wants to Buy

question 155

Multiple Choice

Your uncle is about to retire,and he wants to buy an annuity that will provide him with $80,000 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 him to buy the annuity today?

• A) $955,507.24
• B) $1,202,089.76
• C) $1,027,427.14
• D) $1,243,186.84
• E) $1,058,249.96

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Definitions:

Clinton Administration

The executive period of the United States, from 1993 to 2001, under President Bill Clinton.

Free Trade

The concept or policy allowing unrestricted import and export of goods and services between countries without tariffs, quotas, or other restrictions.

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A foreign policy approach where a country acts independently without consulting or seeking the approval of other nations.

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A foreign policy approach that advocates for multiple countries working together on a given issue, emphasizing collective action.