A 20-year annuity makes an annual payment of $2,250. An investor purchases it at a price which discounts the cash flows by 3%. How does its price change if the rate of discount increases to 3.5%?

a. increases 5%

b. decreases 5%

c. increases 4.68%

d. decreases 4.47%

e. increases .5%

f. decreases .5%