Imperial Life Inc

question 131

Short Answer

Imperial Life Inc. is quoting a rate of return of 5.2% compounded quarterly on 15-year annuities. How much will you have to pay for a 15-year annuity that pays $5,000 (at the end of) every three months?

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Definitions:

Superego

The part of a person's mind that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.

Id

A term in psychoanalytic theory referring to the part of the unconscious personality which contains our primal, instinctive desires and drives.

Ego

A psychoanalytic term referring to the part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.

Resistance

In psychology, the opposition to making changes or exploring unconscious feelings and thoughts during therapy.