Your Aunt Is About to Retire,and She Wants to Buy

Multiple Choice

Your aunt is about to retire,and she wants to buy an annuity that will supplement her income by $65,000 per year for 25 years,beginning a year from today.The going rate on such annuities is 6.25%.How much would it cost her to buy such an annuity today?

A) $770,963.15
B) $811,540.16
C) $852,117.17
D) $894,723.02