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Your friend offers to pay you an annuity of $5,400 at the end of each year for 3 years in return for cash today. You

Your friend offers to pay you an annuity of $5,400 at the end of each year for 3 years in return for cash today. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

Select the correct answer.

a. $14,597.94

b. $14,578.54

c. $14,588.24

d. $14,568.84

e. $14,607.64

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