A city recently purchased acreage from a farmer for housing development. It then divided the land area into a series of equal sized lots on which to build houses. However, some of the lots are located near an old lead smelting plant. A recent study found that these lots did have some ground contamination resulting in an annual loss of value equal to $125 per lot. At a discount rate of 10%, the resulting reduction in price for these lots is O $125.00 O $137.50 O $1,375.00 O $1,250.00