Your Uncle is about to retire, and he wants to buy an annuity that will provide him with $85,000 of income a year for 25 years, with the first payment coming immediately. The going rate on such annuities is 15%. How much would it cost him to buy the annuity today? *

a. $1,063,968

b. $1,119,966

c. $1,178,912

d. $1,240,960

e. None of the above