Question $15$

You have calculated that you will need $$10,000$ per month to cover your living expenses

during a $25-$year retirement period. You are considering buying an annuity contract that will

pay $$10,000$ at the beginning of every month. Assuming a rate of return of $12\%,$ how much

do you need to invest today to purchase this annuity contract?

$$958,960$

$$863,064$

$$949,466$