You are offered the opportunity to put some money away for retirement. You will receive five annual payments of $20,000 each beginning at 40 years.
How much would you be willing to invest today if you desire an interest rate of 11%?
a. $1,842.66
b. $1,318.47
c. $1,262.27
d. $2,720.23
e. $2,257.62
( c is incorrect answser.)