You Have a Chance to Buy an Annuity That Pays

question 69

Multiple Choice

You have a chance to buy an annuity that pays $5,000 at the beginning of each year for 5 years.You could earn 4.5% on your money in other investments with equal risk.What is the most you 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:

Psychoanalytic Therapy

A therapeutic approach developed by Sigmund Freud that seeks to explore and resolve unconscious conflicts and emotional issues through techniques like dream analysis and free association.

Structured Behavior Therapy

A systematic approach to modifying behavior through a set of clearly defined protocols and techniques, commonly used to address specific psychological disorders.

Chronic Schizophrenia

A severe mental disorder characterized by persistent symptoms such as delusions, hallucinations, and disorganized thought and behavior.