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The Good Life Insurance Co. wants to sell you an annuity which will pay you $500 per quarter for 25 years. You want to earn
The Good Life Insurance Co. wants to sell you an annuity which will pay you $500 per quarter for 25 years. You want to earn a minimum rate of return of 5.5 percent. What is the most you are willing to pay as a lump sum today to buy this annuity?
| A. | $26,988.16 |
| B. | $27,082.94 |
| C. | $27,455.33 |
| D. | $28,450.67 |
| E. | $28,806.30 |
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