A local magazine is offering a $10,000 grand prize to one lucky winner. The prize will be paid in five annual payments of $2,000 each, starting one year after the drawing. How much would this prize be worth to you today if you can earn 8 percent on your money?

A.

$5,550.50

B.

$5,925.24

C.

$6,050.82

D.

$7,985.42

E.

$8,624.25