Autumn is considering two insurance settlement offers.

The first offer includes annual payments of R5 000, R7 500, and R10 000 over

the next three years, respectively. The other offer is the payment of one lump

sum amount today. She is trying to decide which offer to accept given the fact

that the discount rate is 5%. What is the minimum amount that she will accept

today if she is to select the lump sum offer?