My aunt is about to retire and she wants to buy an annuity, Ask an Expert

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My aunt is about to retire and she wants to buy an annuity that will supplement her income by $65,000 per for 25 years beginning a year from today. The going rate on such annuities is 6.25%. How much would it cost to buy such an annuity today?

Note: Please use TVM (FV, I/Y, PV, N and PMT) on financial calculator

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