Elvira Is Considering Buying a 20-Year Annuity Due to Provide

question 74

Multiple Choice

Elvira is considering buying a 20-year annuity due to provide her retirement income.The annuity will make annual payments of $25,000.If her opportunity cost is 7%, what is the present value of the annuity?

• A)$1,096,629
• B)$1,024,887
• C)$283,390
• D)$264,850

Analyze the legal ramifications of misrepresentation in contract formation.

Understand the legal requirements and consequences surrounding licensing for professional practice.

Recognize the conditions under which contracts violating state or federal statutes can be deemed invalid.

Learn about the distinction between necessary and non-necessary goods and services for minors.

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Definitions:

Counteroffer

An offeree’s response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.

Original Offeror

The entity or individual who first makes an offer or proposal in a contract negotiation scenario.

Offer Terminates

The point at which a proposal or invitation to engage in a contract is revoked or becomes invalid.

Specified Time

A clearly defined or designated period within which something is supposed to happen or be completed.