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 $53,000 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) $558,149.79
B) $775,964.35
C) $680,670.48
D) $769,157.64
E) $714,704.01