Problem:
A company promises to pay you $1000 per year for three years at the end of each year and $10,000 at the end of the third year if you would loan them a sum of money at a market rate of 6% today.
Required:
Question: What is the maximum amount that you would loan to them?
a. $10,000
b. $11,069
c. $12.673
d. $13,000
Note: Please provide through step by step calculations.