Because Your Mother Is About to Retire, She Wants to Buy

question 50

Multiple Choice

Because your mother is about to retire, she wants to buy an annuity that will provide her with $75,000 of income a year for 20 years, with the first payment coming immediately.The going rate on such annuities is 5.25%.How much would it cost her to buy the annuity today?

• A) $825,835
• B) $869,300
• C) $915,052
• D) $963,213
• E) $1,011,374

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Definitions:

Palazzo del Tè

A mannerist architectural masterpiece in Mantua, Italy, designed by Giulio Romano, known for its playful and innovative design elements.

Giulio Romano

An Italian painter and architect of the High Renaissance and early Mannerist periods, known for his work in Raphael's school and for his contributions to the Palazzo del Te in Mantua.

Federico Gonzaga

An Italian nobleman and the Duke of Mantua from 1519 until his death in 1540, known for his patronage of the arts during the Renaissance.

Mannerist Version

Refers to an adaptation or work in the style of Mannerism, a European art style from the late Renaissance that emphasized artificiality and stylized forms over naturalistic representation.