The Calculation of a Standard Annuity, Using the PMY Function

question 48

Multiple Choice

The calculation of a standard annuity, using the PMY function of Excel or a financial calculator, will produce an insufficient income because that approach fails to consider ________.

• A) variable interest rates
• B) retiree income needs
• C) market volatility
• D) inflation

---

Definitions:

Elated

Feeling or expressing great happiness or triumph.

Instinctive Processes

Innate, biologically determined behaviors that organisms are born with, which do not require learning.

Programmed

The state of having been designed or set up according to a predetermined plan or set of instructions, often used in the context of machinery, computers, or behavioral interventions.

Cellular Modification Theory

A hypothesis in neuroscience suggesting that changes in brain cells' structure or function underpin learning and memory.