Your Father Is About to Retire,and He Wants to Buy

Multiple Choice

Your father is about to retire,and he wants to buy an annuity that will provide him with $84,000 of income a year for 25 years,with the first payment coming immediately.The going rate on such annuities is 5.15%.How much would it cost him to buy the annuity today?

A) $1,471,632.01
B) $981,088.00
C) $1,348,996.01
D) $1,226,360.01
E) $1,508,422.81