You are considering two insurance settlement offers. The first offer includes annual payments of $5,000, $3,500, and $10,000, with the first payment being paid one year from now. The other offer is a lump sum amount today. What is the minimum amount you will accept today in lieu of the annual payments if you require a discount rate of 9.7 percent?

• $14,014

• $15,746

• $16,864

• $14,932

• $15,041