Your Insurance Agent Is Trying to Sell You an Annuity

question 98

Multiple Choice

Your insurance agent is trying to sell you an annuity that costs $100,000 today. By buying this annuity,your agent promises that you will receive payments of $384.40 a month for the next 40 years. What is the rate of return on this investment?

• A) 3.45%
• B) 3.47%
• C) 3.50%
• D) 3.52%
• E) 3.55%

Understand the concept of diffusion in the context of innovation and its challenges.

Differentiate between types of innovation: product, process, and managerial.

Recognize the factors that influence the diffusion of innovations, including their complexity and compatibility with existing practices.

Understand the role of visibility and trialability in enhancing the diffusion of innovations.

---

Definitions:

Verbal Output

The production and expression of words, either spoken or written, as a means of communication.

Words in Sequence

A linguistic arrangement where words are placed in a specific order to convey meaning or perform a linguistic function.

Stereotypic Inferences

Involve drawing broad, oversimplified conclusions about individuals based on their membership in certain groups, often ignoring personal differences.

Salience of Group Membership

The degree to which an individual's affiliation with a group is prominent and affects their behavior and perceptions.