Ann won 1st prize in the perpetuity lottery and gets $1,000 every other year forever with her first payment due at the end of year 1. Her friend Beth won second prize and receives $1,000 every other year forever but her first payment starts at the end of year 2. What is the present value of their combined winnings if d = .2 ?

A. $2,000

B. $3,000

C. $4,000

D. $5,000

E. Over $5,000