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Freda Mai Has a $65,000 Insurance Annuity

Question 196

Multiple Choice

Freda Mai has a $65,000 insurance annuity. The company has offered monthly payments for twenty years as a payout option for this annuity. The insurance company will use a 3% rate of return. How much more per month would Freda Mai receive if the insurance company would pay her a 5% rate of return on her annuity?


A) $13.13
B) $29.37
C) $68.48
D) $71.18
E) $73.01

Correct Answer:

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