An insurance company has an obligation to pay the medical costs for a claimant Annual claim costs today are 35,000, and medical inflation is expected to be 2.5% per year. The claimant will receive 10 payments. Claim payments are made at yearly intervals, with the first claim payment to be made one year from today. Calculate the present value of the obligation using an annual effective interest rate of 7%. 277.009 277,866 277,934 278,446 278,458