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 $78,000 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) $1,013,498.95
B) $1,241,251.52
C) $933,785.55
D) $1,138,762.86
E) $854,072.15