How Much Will It Cost Shaun to Purchase a Two-Level

question 2

Multiple Choice

How much will it cost Shaun to purchase a two-level retirement annuity that will pay $6000 at the end of each month for the first 10 years, and $9000 per month for the next 15 years? The payments represent a rate of return to Shaun of 6% compounded monthly.

• A) $1 066 532
• B) $586 201
• C) $540 441
• D) $1 126 642
• E) $2 193 174

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Definitions:

Mood-congruent Memory

The tendency to recall memories that are consistent with one's current mood, thereby reinforcing that mood.

Depressed

A state of low mood and aversion to activity that can affect a person's thoughts, behavior, feelings, and sense of well-being.

Recall

The process of retrieving information or memories from one's past without the aid of explicit cues.

Graduation

The act of completing and receiving an academic degree or diploma from an educational institution, marking the end of a particular course of study.