Your Father Is Considering Purchasing an Annuity That Pays $5,000

question 147

Multiple Choice

Your father is considering purchasing an annuity that pays $5,000 at the beginning of each year for 5 years.He could earn 4.5% on his money in other investments with equal risk.What is the most he should pay for the annuity?

• A) 20,701
• B) $21,791
• C) $22,938
• D) $24,085
• E) $25,289

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Definitions:

Violent Behavior

Actions that involve force or aggression towards others, often resulting in harm or injury.

Drug Abuse

The habitual taking of addictive or illegal drugs, leading to dependency, health issues, and negative social consequences.

Obsessive-compulsive Disorder

A disorder characterized by unwanted repetitive thoughts (obsessions) and/or actions (compulsions).

Rituals

Established sequences of actions or behaviors, often symbolic in nature, performed in accordance with social, cultural, or religious practices.