Question 1

Your uncle is about to retire, and he wants to buy an annuity that will provide him with $64,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today?

Group of answer choices

$871,258.22

$821,941.71

$961,671.80

$624,675.70

$879,477.63

Question 2

Suppose you inherited $460,000 and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years?

Group of answer choices

$41,999.77

$43,431.58

$45,340.66

$47,727.01

$36,272.53

Question 3

Suppose you inherited $335,000 and invested it at 8.25% per year. How much could you withdraw at the beginning of each of the next 20 years?

Group of answer choices

$32,108.74

$24,081.56

$25,687.00

$25,044.82

$35,961.79