Applied quantitative methods and annuities: Investment for a group of physicians

Applied quantitative methods and annuities: Investment for a group of physicians

A representative of a reputable financial services company has approached you as a manager of a four-person group of anesthesiologists with an opportunity to purchase a 10-year annuity due for each member of the group. The annuity due would pay $40,000 each year beginning 5 years from now (i.e. at time = 5). What is the most you