After consulting with your financial advisor, you figured that you need $100,000 per year for your living during 30 years of the retirement period. You consider buying an annuity contract which will pay $100,000 at the end of every year. Assuming a rate of return of 7%, how much do you need today to buy the annuity contract?

Please show your work.

d. $1,167,654

c. $944,608

a. $1,240,904

b. $1,327,767