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

Multiple Choice

Your uncle is about to retire,and he wants to buy an annuity that will provide him with $57,000 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) $827,207.28
B) $856,488.95
C) $732,041.84
D) $915,052.30
E) $717,401.00