New Jersey Mutual Has Offered You a Single Premium Annuity

question 93

Multiple Choice

New Jersey Mutual has offered you a single premium annuity that will pay you $12,000 per year (end of year) for the next 15 years. If you must pay $109,296 today for this annuity, what is your expected rate of return?

• A) 8%
• B) 9%
• C) 7%
• D) 10%

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Definitions:

Information

Data that has been organized and processed to be meaningful to the person who receives it, often helping in making decisions or solving problems.

Bayley Scales

A series of standardized tests used primarily to assess the motor, language, and cognitive development of infants and toddlers.

Infant Intelligence

The cognitive abilities of infants, including their capacity for memory, problem-solving, language acquisition, and understanding of their environment.

Standardized Measure

A tool or instrument used to assess variables that have been uniformly applied across different groups to ensure comparability.