You Start an Annuity with $1million and Expect to Receive

question 79

Multiple Choice

You start an annuity with $1million and expect to receive 12 equal payments beginning at the end of the first year.The guaranteed annual interest rate is 6 percent.The annual payments that you expect to collect are

• A)$88,333.33.
• B)$119,277.03.
• C)$59,638.51.
• D)$56,262.75.
• E)$112,525.50.

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Definitions:

Money Management

Money Management is the process of budgeting, saving, investing, spending, or otherwise overseeing the capital usage of an individual or group.

Rationalization

A psychological strategy where disputable actions or emotions are rationalized in an apparently logical way to evade the actual reasoning.

Depot Antipsychotic

Long-acting injectable antipsychotic medications used in the treatment of schizophrenia and other disorders, providing steady medication levels.

Delusional

A condition in which a person holds beliefs firmly despite them being contradicted by reality or rational argument, typically owing to a mental disorder.