Your Aunt Is About to Retire,and She Wants to Sell

question 25

Multiple Choice

Your aunt is about to retire,and she wants to sell some of her stock and buy an annuity that will provide her with income of $53,000 per year for 30 years,beginning a year from today.The going rate on such annuities is 7.25%.How much would it cost her to buy such an annuity today?

• A) $519,610.24
• B) $493,950.47
• C) $756,963.06
• D) $641,494.12
• E) $647,909.06

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Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, helping an individual to understand the consequences of actions.

Observational Learning

Attaining new behaviors by seeing and mimicking others.

Hearing Sensitivity

Hearing Sensitivity refers to the ability of the auditory system to detect sounds of varying intensities.

Brain Weight

The mass of the brain, which can vary between individuals and is influenced by factors like age, sex, and body size.