A life insurance company has an obligation to pay the benefits to the widow of a claimant. Annual claim costs today are 75000, and CPI inflation is expected to be 2% per year (1\% semi-annually). The claimant will receive 30 payments. Claim payments are made at semi-annual intervals, with the first claim payment to be made 6-month from today. Calculate the present value of the obligation using an annual effective interest rate of 5.0% a. 155,920 b. 902,360 c. 1,302,670 d. 1,804,725 e. 2,250,000