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 $74,000 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) $853,488.17
B) $950,721.00
C) $1,047,953.82
D) $1,080,364.77
E) $1,026,346.53