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 $85,000 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) $1,063,968
B) $1,119,966
C) $1,178,912
D) $1,240,960
E) $1,303,008