Now that your uncle has decided to retire, 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
Correct Answer:
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