You Are Considering an Annuity That Costs $100,000 Today

question 52

Multiple Choice

You are considering an annuity that costs $100,000 today.The annuity pays $6,000 a year.The rate of return is 4.5 percent.What is the length of the annuity time period?

• A)24.96 years
• B)29.48 years
• C)31.49 years
• D)33.08 years
• E)38.00 years

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Definitions:

Compliance Technique

Strategies used to persuade or encourage individuals to agree to requests or demands.

Foot-In-The-Door

A persuasive technique where agreeing to a small request increases the likelihood of agreeing to a larger request later.

Door-In-The-Face

A persuasion strategy where a large, likely-to-be-rejected request is made first, followed by a smaller, more reasonable request.

Groupthink

A phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.