Because Your Mother Is About to Retire, She Wants to Buy

Multiple Choice

Because your mother is about to retire, she wants to buy an annuity that will provide her 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 her to buy the annuity today?

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