After consulting with your financial advisor, you figured that you need $100,000 per year for your living during 20 years of the retirement period. You consider buying an annuity contract which will pay $100,000 at the beginning of every year. Assuming a rate of return of 3%, how much do you need today to buy the annuity contract?

Please show your work.

b. $1,487,747

a. $2,018,845

c. $1,413,394

d. $1,532,380