An Uncle of Yours Who Is About to Retire Wants

question 127

Multiple Choice

An uncle of yours who is about to retire wants to sell some of his stock and buy an annuity that will provide him with income of $50, 000 per year for 30 years, beginning a year from today.The going rate on such annuities is 7.25%.How much would it cost him to buy such an annuity today?

• A) $574, 924
• B) $605, 183
• C) $635, 442
• D) $667, 214
• E) $700, 575

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Definitions:

Wheel Speed Sensor

Reluctor-type electromagnetic device used to signal wheel speed data to an antilock controller. Consists of a permanent magnet and toothed reluctor. As the reluctor wheel cuts through a magnetic field, AC is generated and a frequency signal produced.

ABS Outputs

The signals or actions produced by the Anti-lock Braking System to prevent wheel lockup and maintain steering control during braking.

PLC

Programmable Logic Controller, an industrial digital computer adapted for the control of manufacturing processes, such as assembly lines, robotic devices, or any activity that requires high reliability, ease of programming, and process fault diagnosis.

Tandem Axle

A configuration of two axles situated close together in a vehicle to support more weight and improve stability, often found in trucks and trailers.