Because your mother is about to retire, she wants to buy an annuity that will provide her with $75, 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 her to buy the annuity today?
A) $825, 835
B) $869, 300
C) $915, 052
D) $963, 213
E) $1, 011, 374
Correct Answer:
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