An investor purchased a 10 year annuity for $855,000. The annuity makes annual distributions of $155,000. The investor is hoping this investment will yield 13%. The investor has asked your opinion on what you think the annuity is currently worth today (said another way, the most you would be willing to pay for this investment right now in order to have a 13% return on your investment. You tell him that he should have paid (rounded to nearest 100).

A. $855,000. B. $825,000. C. $866,000. D. $834,000. E. None of the above; __________ (whats your answer)?