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Your father is about to retire, and he wants to buy an annuity that will...

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Finance

Your father is about to retire, and he wants to buy an annuity that will provide him with $56,000 of income a year for 25 years, with the first payment coming immediately. The going rate on such annuities is 4.30%. How much would it cost him to buy the annuity today?
a. $866,485.11
b. $884,196.96
c. $1,302,325.58
d. $847,743.97
e. $903,743.97

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