Assuming 100 policies are sold, determine the revenue that will be recognize in 2017

An agency sells an insurance policy offered for a commission of $115 on January 2, 2017. The agency will receive an additional commission of $10 each year for as long as the policyholder does not cancel the policy. After selling the policy, the agency does not have any remaining performance obligations. Based on experience with these types of policies, it estimates that policyholders on average renew the policy for 4.5 years after the first year before terminating their insurance policy. It has no evidence to suggest that previous policyholder behavior will change.

The answer is NOT 0, 2500, 2778, 3556, 11500, 12500, or 16000