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You inherit an annuity that will pay you $12,500 per year for 20 years, with the first payment being made today. A fair return in

You inherit an annuity that will pay you $12,500 per year for 20 years, with the first payment being made today.

A fair return in the market approximates 7%.

How much should you ask for it if you decided to sell it?

Select one:

a. $115,287.58

b. $106,747.76

c. $141,694.94

d. $132,425.18

e. $250,000

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