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Your friend offers to pay you an annuity of $7,200 at the end of each year for 3 years in return for cash today. You

Your friend offers to pay you an annuity of $7,200 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. $19,463.92

b. $19,425.12

c. $19,454.22

d. $19,434.82

e. $19,444.52

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