Because Your Mother Is About to Retire, She Wants to Buy

question 50

Multiple Choice

Because your mother is about to retire, she wants to buy an annuity that will provide her with $75,000 of income a year for 20 years, with the first payment coming immediately.The going rate on such annuities is 5.25%.How much would it cost her to buy the annuity today?

• A) $825,835
• B) $869,300
• C) $915,052
• D) $963,213
• E) $1,011,374

---

Definitions:

Predicate

A grammatical and logical term that refers to the part of a sentence or an expression that states something about the subject.

Propositions

Statements or assertions expressing judgments or opinions that can be either true or false.

True

Corresponding to reality or fact; not false.

False

Pertains to something that is not true or is based on incorrect information.