Uncle Tigran is 65 years of age and has a life expectancy of 13 more years. He wishes to invest $25,000 in an annuity that will make a level payment at the end of each year until his death. If the interest rate is 7%, what income can uncle Tigran expect to receive each year?

a.

$1,923.07.

b.

$2,991.27.

c.

$3,221.25.

d.

$2,771.45.