Daniel Makes Annual Payments of $2,000 to the Former Owner

Short Answer

Daniel makes annual payments of $2,000 to the former owner of a residential lot that he purchased a few years ago. At the time of the fourth from last payment, Daniel asks for a payout figure that would immediately settle the debt. What amount should the payee be willing to accept instead of the last three payments, if money can earn 8.5% compounded semi-annually?