A large company has hired you as financial consultant to help them in the design of the retirement plans for the employees of the companies.The company wants to give different options to the retired employee for end of service benefits. However<, it wants to make they are all equivalent to be fair to all employees. The options they are currently considering the following options on retirement date:

Option 1: a lump sum benefit of 250,000 AED.

option 2: a fixed payment at the end of each year 10 year.

option 3: a payment increasing annually at rate of 5% p.a. for 7 years.

option 4: a fixed payment forever,

Assuming expected future interest rate on retirement date is 8% p.a., find the amount of periodic payment that should be provided under;

A) Option 2

B) Option 3

c) Option 4