Atlas Insurance Wants to Sell You an Annuity Which Will

question 46

Multiple Choice

Atlas Insurance wants to sell you an annuity which will pay you $1,600 per quarter for 25 years.You want to earn a minimum rate of return of 6.5 percent.What is the most you are willing to pay as a lump sum today to buy this annuity?

• A)$72,008.24
• B)$74,208.16
• C)$78,818.41
• D)$83,008.80
• E)$88,927.59

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Definitions:

Social Anxiety Disorder

A chronic mental health condition in which social interactions cause irrational anxiety, fear, self-consciousness, and embarrassment.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a widely used manual for diagnosing and classifying mental disorders.

Biological Factor

Any physiological, genetic, or biochemical influence that can affect a person's mental or physical health.