Your Father Is About to Retire,and He Wants to Buy

question 52

Multiple Choice

Your father is about to retire,and he wants to buy an annuity that will provide him with $85,000 of income a year for 25 years,with the first payment coming immediately.The going rate on such annuities is 5.15%.How much would it cost him to buy the annuity today?

• A)$1,063,968
• B)$1,119,966
• C)$1,178,912
• D)$1,240,960
• E)$1,303,008

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Definitions:

Narcotic Analgesics

Medications that relieve pain by acting on the central nervous system, often having the potential for dependency or abuse.

Terminal Cancer

An advanced stage of cancer for which there is no cure and the focus of care is on the quality of life and palliative treatments to alleviate symptoms.

Improved Mobility

Enhanced ability to move or function, often referring to increased ease of physical movement or locomotion.

Ambulate

To walk or move about freely, used often in medical contexts to refer to a patient's ability to walk after an injury or surgery.