Nick Can Purchase an Annuity That in 5 Years (End

question 192

Multiple Choice

Nick can purchase an annuity that in 5 years (end of 5^th year) will pay him $8,500 per year for 10 years. If interest is 5.7% compounded annually, determine how much Nick will pay now to purchase the annuity.

• A) $52,445.51
• B) $52,068.95
• C) $51,991.42
• D) $50,839.07
• E) $50,440.68

---

Definitions:

Trade Alliances

Cooperative agreements between nations or businesses to further their commercial interests, often involving tariff reductions and import/export incentives.

Native Americans

The indigenous peoples of the United States, including various tribes and nations, each with their own distinct cultures, languages, and histories.

Persecuted Protestants

Individuals or groups following Protestant Christianity who faced oppression, harassment, or violence because of their religious beliefs, historically and in various contexts worldwide.