Daniel makes annual payments of $2000 to the former owner of a residential lot that he purchased

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Daniel makes annual payments of $2000 to the former owner of a residential lot that he purchased a few years ago. At the time of the fourth from last payment, Daniel asks for a payout figure that would immediately settle the debt. What amount should the payee be willing to accept instead of the last three payments, if money can earn 8.5% compounded semiannually?
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