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our uncle is about to retire, and he wants to buy an annuity that will provide him with $69,000 of income a year for 20

our uncle is about to retire, and he wants to buy an annuity that will provide him with $69,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 5.50%. How much would it cost him to buy the annuity today?

a. $844,979.14

b. $824,576.39

c. $869,928.09

d. $846,991.84

e. $893,576.39

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