father is about to retire, and he wants to buy an annuity that will provide him with $85,000 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)$1,063,968
B)$1,119,966
C)$1,178,912
D)$1,240,960
E)$1,303,008

Question

Quizplus · Accepted Answer

The Answer of father is about to retire, and he wants to buy an annuity that will provide him with $85,000 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)$1,063,968
B)$1,119,966
C)$1,178,912
D)$1,240,960
E)$1,303,008

Father Is About to Retire, and He Wants to Buy