Hadley wants to retire in 15 years, and he wants to have an annuity of $50,000 a year for 10 years after retirement. Hadley wants to receive the first annuity payment the day he retires. Using an interest rate of 8%, how much must Hadley invest today in order to have his retirement annuity (round to nearest dollar). Hints: first annuity in Year 15.
a. $105,765
b. $114,226
c. $156,890
d. $215,240
e. None of the above