Your Insurance Agent Is Trying to Sell You an Annuity

question 98

Multiple Choice

Your insurance agent is trying to sell you an annuity that costs $230,000 today.By buying this annuity,your agent promises that you will receive payments of $1,225 a month for the next 30 years.What is the rate of return on this investment?

• A)3.75 percent
• B)4.47 percent
• C)4.93 percent
• D)5.45 percent
• E)5.67 percent

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Definitions:

Digestive Organs

Organs involved in the digestion process, including the mouth, esophagus, stomach, liver, gallbladder, pancreas, intestines, rectum, and anus.

Respiratory Organs

Organs involved in the process of breathing, including the nose, throat, larynx, trachea, bronchi, and lungs.

Extraembryonic Membrane

Membranes that support the development of the embryo, such as the amnion and chorion.

Protective Fluid

A fluid that safeguards body parts by cushioning, lubricating, or providing a barrier.