投资学第7版Test Bank答案26(19)

2021-01-20 18:47

投资学第7版Test Bank答案

53. How much can Alan expect to have in his risky account at retirement?

A) $158,982

B) $309,529

C) $543,781

D) $224,651

E) $345,886

Answer: B Difficulty: Moderate

Rationale: The value in the risky account in 17 years will be $46,800*(1.10)17 +

$1,800*FVIFA10%,17 = $309,529.

54. An income beneficiary is __________.

A) a stockbroker who remained working on Wall Street after the 1987 crash

B) an employee of a trustee

C) one who receives interest and dividend income from a trust during their lifetime

D) one who receives the principal of a trust when it is dissolved

E) none of the above

Answer: C Difficulty: Easy

55. Assume that at retirement you have accumulated $750,000 in a variable annuity

contract. The assumed investment return is 9% and your life expectancy is 25 years. What is the hypothetical constant benefit payment?

A) $30,000.00

B) $33,333.33

C) $51,481.38

D) $76,354.69.

E) cannot tell without additional information.

Answer: D Difficulty: Moderate

Rationale: PV = -750,000, i = 9, n = 25, PMT = 76,354.69.

56. Assume that at retirement you have accumulated $750,000 in a variable annuity

contract. The assumed investment return is 9% and your life expectancy is 25 years. If the first year's actual investment return is 9%, what is the starting benefit payment?

A) $30,000.00

B) $33,333.33

C) $76,354.69

D) $52,452.73

E) cannot tell without additional information

Answer: C Difficulty: Difficult

Rationale: See 26.44, B = 76,354.69 (1.09/1.09) = 76,354.69


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