You just inherited some money, and a broker offers to sell you an annuity that pays $5,000 at the end of each year for 20 years. You could earn 5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
Answer
A. $50,753
B. $53,424
C. $56,236
D. $59,195
E. $62,311