A man wants to ensure an inflation-adjusted income for 25 years of $100 per month for the first year, increasing 5% each year for the next 24 years, but starting in 15 years' time. All the payments will be made at the beginning of each month. He can invest in a deferred annuity at a nominal rate of 7% converted quarterly. What is the present value of his total investment? a $8,547 b. $8,325 c. $7,922 d $8,105 e. $7.775