A financial institution needs to set aside a fund to meet the following future annuity payments to an individual: 1187 paid at the beginning of each year for the first 9 years followed by 1427 paid at the beginning of each year up until year 27 (inclusive). whereas the rate of interest throughout the entire 27 years is made up by: 5.0% pa effective for the first 16 years and then 5.0% pa effective thereafter.

Calculate the total amount of reserve the insurer needs to hold today in order to meet these payments. Express your answer in s