Shauntae is 75 years old.He purchased a single life annuity contract that will pay him $3,000 per month for 10 years.The expected return under the contract is:

Question

Quizplus · Accepted Answer

To find the expected return under the contract, we need to multiply the monthly payout by the number of months it will be paid out over the 10-year period.

$3,000/month x 12 months/year x 10 years = $360,000

Therefore, the expected return for Shauntae's annuity contract is $360,000.

Shauntae Is 75 Years Old