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:

Creditor

An entity to which a debtor owes money.

Incorporator

A person or entity that signs the articles of incorporation, thereby initiating the creation of a corporation.

De Jure Status

A legal term that means something is recognized by law, regardless of the actual situation on the ground.

Cumulative Voting

A voting system used in corporate elections that allows shareholders to allocate all their votes to one candidate or distribute them among several candidates.