Invest today in order to have retirement annuity

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Hadley wants to retire in 15 years, and he wants to have an annuity of $50,000 a year for 10 years after retirement. Hadley wants to receive the first annuity payment the day he retires. Using an interest rate of 8%, how much must Hadley invest today in order to have his retirement annuity (round to nearest dollar). Hints: first annuity in Year 15.

a. $105,765

b. $114,226

c. $156,890

d. $215,240

e. None of the above

Reference no: EM13848202

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