At age 35, Smith purchased a singlepremium whole life insurance policy with a face amount of $105,000. At the same time Smith also purchased a life annuity providing annual payments of $2,500 commencing one year after issue. The effective annual interest rate for each policy is 5%. The actuarial present value for each policy is $K. In which of the following ranges is $K? 5 $25, 000 a 2 $25, 000 but