Mo will receive a perpetuity of $34,000 per year forever, while curly will receive the same annual payment for the next 50 years. If the interest rate is 7.8% how much more are Mo's payments worth?

1. $10,706.21

2. $9,559.11

3. $9,877.55

4. $9,081.16

5. $10,196.39

Please show step by step calculation I am having difficulty understanding this question.