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Because your mother is about to retire, she wants to buy an annuity that will provide her with $75,000 of income a year for 20

Because your mother is about to retire, she wants to buy an annuity that will provide her with $75,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost her to buy the annuity today?

	a.	$1,011,374
	b.	$963,213
	c.	$915,052
	d.	$869,300
	e.	$825,835

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