Your uncle is about to retire, and he wants to buy an annuity that will provide him with $60,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 6.0%. How much would it cost him to buy the annuity today?

a.

$729,486.99

b.

$624,675.70

c.

$961,671.80

d.

$821,941.71

e.

$879,477.63