An inflation$-$protected insurance package pays you $1,000$ starting in $5$ years. The payment will increase with inflation which is expected to be $4\%$ per annum. The package can be transferred even after you die, so it technically pays forever. If you require a return of $12\%$ at least, what is the maximum you should pay for the package now?

Question $2$ options:

$$8,333\mathrm{.}33$

$$7,092\mathrm{.}84-$ NOT CORRECT

$$12,500\mathrm{.}00$

$$7,943\mathrm{.}98$