Steve Black Has Just Turned 65

Steve Black has just turned 65.He has $100,000 to invest in a retirement annuity.One investment company has offered to pay Steve $10,000 per year for 15 years (payments to begin in one year) in exchange for an immediate $100,000 payment.If Steve accepts the offer from the investment company,what is his expected return on the $100,000 investment (assume a return that is compounded annually) ? Present value tables or a financial calculator are required.

A) between 5 and 6 percent
B) between 6 and 7 percent
C) between 7 and 8 percent
D) between 8 and 9 percent