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A lottery pays you $125,000 per year forever, with annual payment starting in one year. How much is this lottery worth for you today, if

A lottery pays you $125,000 per year forever, with annual payment starting in one year. How much is this lottery worth for you today, if the interest rate is 4.5% per year?

A) $2,666,667

B) $2,521,212

C) $2,777,778

D) $2,858,122

E) $2,850,000

F) None of the above

Please show work Thank you!

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