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Assume you are to receive a 1 0 - year annuity with annual payments of $ 1 0 0 0 . The first payment will

Assume you are to receive a 10-year annuity with annual payments of $1000. The first payment will be
received at the end of Year 1, and the last payment will be received at the end of Year 10. You will invest each
payment in an account that pays 9 percent compounded annually. Although the annuity payments stop at the
end of year 10, you will not withdraw any money from the account until 25 years from today, and the account
will continue to earn 9% for the entire 25-year period. What will be the value in your account at the end of Year
25(rounded to the nearest dollar)?
Select one:
a. $48,359
b. $35,967
c. $48,000
d. $55,340
e. None of these solutions is correct
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