If You Want to Purchase an Annuity Providing an Income

question 181

Multiple Choice

If you want to purchase an annuity providing an income of $2,000 at the end of each month for five years, how much will it cost if the purchase funds earn 18% compounded monthly?

• A) $192,429.30
• B) $78,760.54
• C) $80,681.00
• D) $4,886.44
• E) $818.60

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Definitions:

Infected Population

The segment of a community or species that is currently suffering from an infectious disease.

Single-Parent Homes

Households where children are raised by only one parent, either due to separation, divorce, widowhood, or by choice.

College Education

A post-secondary education offered by colleges and universities, leading to an associate's, bachelor's, master's, or doctoral degree.

Two-Parent Homes

Households where children live with both of their biological or adoptive parents.