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

question 55

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 $78,000 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) $774,150.27
• B) $802,472.84
• C) $1,104,580.26
• D) $944,085.69
• E) $821,354.55

---

Definitions:

Categorical Propositions

Statements that relate two categories or classes in a way that affirms or denies membership of one in relation to the other.

Contrary

Logically opposite, exhibiting contrast in a particular quality without being completely different.

Subcontrary

In logic, propositions that cannot both be false, but can both be true, especially within the square of opposition.

Subalternate

In classical logic, the term for propositions that are related in such a way that the truth of one implies the truth of the other.