Uncle Is About to Retire, and He Wants to Buy

Multiple Choice

uncle is about to retire, and he wants to buy an annuity that will provide him with $75,000 of income a year for 20 years, with the first payment coming immediately.The going rate on such annuities is 5.25%.How much would it cost him to buy the annuity today?

A) $825,835
B) $869,300
C) $915,052
D) $963,213
E) $1,011,374