Your father is about to retire, and he wants to buy an annuity that will provide him with $91,000 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?
Answer
a.
$1,248,843.27
b.
$1,328,556.67
c.
$1,474,697.91
d.
$1,169,129.87
e.
$1,408,270.07