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

question 93

Multiple Choice

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

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

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Definitions:

Juxtaposition

The act of placing two or more things side by side for the purpose of highlighting their differences or similarities.

State Society

A form of human social organization characterized by a formal governmental structure and a clear division of society into classes or groups.

Ethnic Group

A group of people forming a community who have similar cultural heritage or ancestry.

Homogeneous

Characterized by uniformity or similarity, often referring to populations, substances, or areas with little diversity.