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Your father is about to retire, and he wants to buy an annuity that will provide him with $95,000 of income a year for 27
Your father is about to retire, and he wants to buy an annuity that will provide him with $95,000 of income a year for 27 years, with the first payment coming today. The going rate on such annuities is 6.5%; how much would it cost him to buy the annuity today? If the going rate increase to 7%; how much would it cost him to by the annuity today?
Group of answer choices
$1.350 million; $1.290 million
$1.195 million; $ 1.139 million
$1.272 million; $ 1.218 million
$1.123 million; $1.073 million
$1.274 million; $1.211 million
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