You Have a Chance to Buy an Annuity That Pays

question 15

Multiple Choice

You have a chance to buy an annuity that pays $3,300 at the beginning of each year for 3 years.You could earn 5.5% on your money in other investments with equal risk.What is the most you should pay for the annuity?

• A) $9,392.86
• B) $7,420.36
• C) $7,138.57
• D) $10,426.07
• E) $10,801.78

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Definitions:

Driving While Impaired

The act of operating a vehicle under the influence of alcohol, drugs, or other substances that impair cognitive and motor skills.

Occupiers' Liability Act

Legislation that defines the duty of care owed by individuals or entities that control premises towards those who enter them.

Legal Duty

An obligation arising from law that requires an individual or entity to conform to a standard of conduct.

Prudent Person

An individual who exercises caution and good judgment when making decisions, often used as a standard for legal and financial decisions.