How much would it cost him to buy the annuity today

Reference no: EM13263803

Your father 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 discount rate on such annuities is 5.15%. How much would it cost him to buy the annuity today?

Reference no: EM13263803

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