A) A 60-year old considers an annuity that will provide $50,000 per year for 20 years. She is willing to wait until 7 years later to receive the first payment.Assume the interest rate is 3.75%. What is the price of the deferred annuity at the year 6, one year before the annuity begins?

Select one:

$694,810.21

$700,825.21

$690,582.33

$702,936.61

B) Continued with previous question. What should be the fair price of the deferred annuity today?

Select one:

a.$557,105.65

b.$566,302.86

c.$562,033.53

d.$540,385.21

C) Mr. Smith has $600,000 total retirement saving. Assume he can earn 4.5% on his money and he withdraw $50,000 at the end of each year.How long will it last before he runs out of his saving?

Select one:

a.17.64

b.12

c.20.03

d.19.21

e.15.64