You Are Considering Two Insurance Settlement Offers

You are considering two insurance settlement offers.The first offer includes annual payments of $25,000,$17,500,and $12,500,with the first payment being paid 1 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 6.2 percent?

A) $50,877.67
B) $49,492.88
C) $52,213.15
D) $55,000.00
E) $54,556.88