John will retire seven years later and would like to have a 10-payment annual annuity that will have its first payment at the moment when he retires. If the payment amount is $50,000 a year and the interest rate is 12%, what is the fair value should be paid today for this annuity?
A) $282,511
B) $143,129
C) $141,667
D) $316,412
E) $160,304
ESSAY QUESTIONS
