A 7-year term insurance policy has an annual premium of $500, and at the end of 7 years, all payments and interest are refunded. What lump-sum deposit is necessary to equal this amount if you assume an interest rate of 2.5% compounded annually? (a) State the type. O present value of an annuity amortization O sinking fund O future value o ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.)