Your friend offers to pay you an annuity of $7,500 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. $20,250.30

b. $20,234.50

c. $20,242.40

d. $20,258.20

e. $20,226.60