An Uncle of Yours Who Is About to Retire Wants

question 140

Multiple Choice

An uncle of yours who is about to retire wants to sell some of his stock and buy an annuity that will provide him with income of $50,000 per year for 30 years, beginning a year from today.The going rate on such annuities is 7.25%.How much would it cost him to buy such an annuity today?

• A) $574,924
• B) $605,183
• C) $635,442
• D) $667,214
• E) $700,575

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Definitions:

Endocrine Glands

Glands of the endocrine system that release hormones directly into the bloodstream, regulating various bodily functions.

Realistic Optimists

Individuals who maintain a positive outlook on life while still being grounded in a realistic understanding of their situation or the world around them.

Exhaustion Phase

The final stage of the general adaptation syndrome, characterized by the body's depletion of resources after prolonged exposure to stress.

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through when exposed to chronic stress.