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Atlas Insurance wants to sell you an annuity which will pay you $600 per quarter...

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Accounting

Atlas Insurance wants to sell you an annuity which will pay you $600 per quarter for 25 years. You want to earn a minimum rate of return of 5.0 percent. What is the most you are willing to pay as a lump sum today to buy this annuity?

a) $29,735.24

b) $30,319.28

c) $28,778.49

d) $34,140.80

e) $33,825.47

f) Other, specify

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