QRS Insurance Company has settled a lawsuit by offering a guaranteed deferred (end of year payments) annuity. The recipient, Charles, will be paid $63,000 each year for 17 years. The discount rate is 7%, and the interest rate on the insurance company’s investments is 8%. How much must QRS set-aside today for making these payments? Why were QRS and Charles unable to settle on a one-time payment of $600,000?