Present Value of Ordinary Annuity 4. After consulting with your financial advisor, you figured that you need $100,000 per year for your living during 20 years of the retirement period. You consider buying an annuity contract which will pay $100,000 at the end of every year. Assuming a rate of return of 5%, how much do you need today to buy the ordinary annuity contract? a. $1,246,221 5. After consulting with your financial advisor, you figured that you need $100,000 per year for your living during 30 years of the retirement period. You consider buying an annuity contract which will pay $100,000 at the end of every year. Assuming a rate of return of 5%, how much do you need today to buy the ordinary annuity contract? a. $1,537,245