Now That Your Uncle Has Decided to Retire, He Wants

question 24

Multiple Choice

Now that your uncle has decided to retire, he wants to buy an annuity that will provide him with $85,000 of income a year for 25 years, with the first payment coming immediately.The going rate on such annuities is 5.15%.How much would it cost him to buy the annuity today?

• A) $1,063,968
• B) $1,119,966
• C) $1,178,912
• D) $1,240,960
• E) $1,303,008

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Definitions:

Derailed Managers Study

A research study focusing on identifying the reasons why managers fail to achieve their expected career progression or performance.

First-Line Manager

A manager at the lowest level of an organization who directly manages staff and operations.

Limited Resources

The scarce availability of inputs required to produce goods and services, such as capital, labor, and raw materials.

Management Process

A systematic series of actions taken by managers to plan, organize, lead, and control an organization towards achieving its objectives.