Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. your father is about to retire, and he wants to bu

Your father is about to retire, and he wants to buy an annuity that will...

70.2K

Verified Solution

Question

Finance

Your father is about to retire, and he wants to buy an annuity that will provide him with $56,000 of income a year for 25 years, with the first payment coming immediately. The going rate on such annuities is 4.30%. How much would it cost him to buy the annuity today?
a. $866,485.11
b. $884,196.96
c. $1,302,325.58
d. $847,743.97
e. $903,743.97

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

Q. Discuss the details of secretion, regulation and function on target tissue of hormone Oxytocin.

Basic Math
1.2K views

Let f(x) = 9x^4 - 6x +23x + 25. Use Descartes' Rule of Signs to...

Statistics
1.2K views

that his or her luggage is black 16 Sleepwalking Based on a report in Neurology...

Algebra
1.2K views

11 What could this graph represent spider population trend after much of the spiders food...

Accounting
1.2K views

Charlotte is a partner in, and sales manager for, CD Partners, a domestic business that...

Accounting
1.2K views

The following transactions apply to Ozark Sales for Year 1: The business was...

Accounting
1.2K views

QS 22-6 (Algo) Allocating costs to departments LO P2 Macee Store has three operating departments,...

Accounting
1.2K views

This is for 2020. John and Sandy Ferguson got married eight years ago and...

Accounting
1.2K views

Your great uncle Zeus has died unexpectedly and left you a bank CD in his...

Accounting
1.2K views

Sales and Production Budgets Sonic inc. manufactures two models of speakers, Rumble and Thunder. Based...

Accounting
1.2K views

Gallery purchases the copyright on a painting for $418,000 on January 1. The copyright is...

Accounting
1.2K views

La tasa de costos indirectos predeterminada ($18.50 por hora de mano de obra directa) se...