I have been hammering away at this question and I'm just looking for a validation.

An insurance agent is trying to sell you an immediate-retirement annuity, which for a single amount paid today will provide you with $12,000 at the end of each year for the next 25 years. You currently earn 9% on low-risk investments comparable to the retirement annuity. Ignoring taxes, what is the most you would pay for this annuity?

This is what I have come up with, I'm I correct:

PRESENT VALUE OF AN ANNUITY
Annuity $12,000.00
Interest Rate, percentage per year 9%
Number of Years 25
Compounding periods 1
Present Value of Ordinary Annuity $117,870.96

Thanks in advance!

Correct.

Now what I'd like to know is how to find a "low-risk" investment that pays 9%. :p