Your Insurance Agent Is Trying to Sell You an Annuity

question 70

Multiple Choice

Your insurance agent is trying to sell you an annuity that costs $165,000 today. By buying this annuity, your agent promises that you will receive payments of $775 a month for the next 40 years. What is the rate of return on this investment?

• A) 4.28%
• B) 4.39%
• C) 4.52%
• D) 4.67%
• E) 4.81%

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