Question $8$

$\frac{0}{2}$ pts

Although Joe is interested in the defined benefit offered by UM$,$ he would also like to consider taking a lump sum with the first payment coming one year from today. If his life expectancy is $25$ years from today and the prevailing market rate is $8\mathrm{.}0\%,$ what should the lump sum be if the annual defined benefit is $$40,000?$

NOTE: The answer to the prior problem is NOT $$40,000,$ but I am asking you to assume it is that answer.

$402,617\mathrm{.}6$