Billy has $20,000 that he can invest today. In addition to this amount, he can also invest $9,000 per year for 30 years (beginning one year from now) at which time he will retire. He expects he will live for 25 years after he retires. If expected annual returns are 7.5 percent, what size annual annuity payment can he obtain for his retirement years, assuming all annuity payments are at year-end.

Select one:

a.

$103,258

b.

$116,323

c.

$99,193

d.

$89,920

e.

$72,693