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Oprah Has $250,000 and Wishes to Purchase a Single-Premium Annuity

Question 14

Multiple Choice

Oprah has $250,000 and wishes to purchase a single-premium annuity. All other things being equal, which of the following annuities will provide her with the smallest monthly liquidation payment?


A) 20-year period certain, joint and 2/3 survivor, single premium
B) 20-year period certain, single premium
C) 20-year period certain, joint and survivor, single premium
D) Straight life annuity, single premium.

Correct Answer:

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