3-82 You Start an Annuity with $1million and Expect to Receive

question 68

Multiple Choice

3-82 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:

Consistency

The quality of being uniform, stable, or unchanging over time, often considered important in areas like behavior, policy, and product quality.

Distinctiveness

The quality or state of being different or unique compared to others.

Consensus

General agreement or collective opinion among members of a group, often reached after discussion and negotiation.

Ability Attribution

The process of attributing outcomes to one's own innate capabilities or to external factors.