1. Your aunt is about to retire, and she wants to sell some of her stock and buy an annuity that will provide her with income of $40,000 per year for 30 years, beginning a year from today. The going rate on such annuities is 7.25%. How much would it cost her to buy such an annuity today?

   		$503,512.37
   		$571,292.88
   		$455,097.72
   		$484,146.51
   		$561,609.95 *explain please