Exercise 9-4

Parker is planning for his retirement this year. One option that has been presented to him is the purchase of an annuity that would provide a $37,000 payment each year for the next 15 years. Calculate how much Parker should be willing to pay for the annuity if he can invest his funds at 8%.

Annuity Payment $__________________ (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.)