Joshua Desires to Purchase an Annuity on January 1, 2014

question 35

Multiple Choice

Joshua desires to purchase an annuity on January 1, 2014, that yields him five annual cash flows of $10,000 each, with the first cash flow to be received on January 1, 2017. The interest rate is 10% compounded annually. The cost present value) of the annuity on January 1, 2014, is

• A) $31,328.81.
• B) $34,461.70.
• C) $37,907.87.
• D) $48,684.19.

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Definitions:

Psychological Disorders

Mental health conditions characterized by disruptions in thinking, feeling, mood, and behavior, leading to varying levels of distress or impairment in daily functioning.

Anthropology

The scientific study of humans, human behavior, and societies in the past and present.

Delusional System

A complex set of beliefs or perceptions that are firmly maintained despite being contradicted by reality or rational argument, typically a symptom of psychotic disorder.

Society's Norms

Shared rules or guidelines within a community that dictate acceptable and expected behavior, contributing to social order and cohesion.