You Have Set Up a Life Annuity with a Present

question 26

Multiple Choice

You have set up a life annuity with a present value of $250,000. If your life expectancy at retirement is 25 years, what will your monthly income be if the APR is 8%, compounded monthly.

• A)$1889.03
• B)$1929.54
• C)$1978.69
• D)$2047.65

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Definitions:

Production Increases

The rise in the amount of goods or services produced by a company, often due to greater demand or improved efficiency.

Buying Product

Involves the process of selecting and purchasing products for personal use, for resale, or for use in manufacturing other products.

Retailers Stock

Retailers stock refers to the inventory of goods and products that a retailer keeps on hand to meet customer demand.

Sales Increasing

A situation where the number of goods or services sold is growing over a period.