The second product Suzie represents is an annuity. The customers of this product are typically retirees that use their retirement savings to buy a steady income stream. Like before, there are a range of options for this product, but the most typical arrangement is as follows:

Customers buy this product on their 65th birthday when they retire. The annuity will make 20 annual payments of $80,000. The first annual payment of $80,000 will occur on the customers 68th birthday (customers typically rely on their personal savings to travel for the first few years). For this product, Wagon Financial can invest the customers money at 12% per annum effective.

Using the information provided, answer the following questions.

e) What price should Wagon Financial charge for this product?