Noel Klinger is planning to invest in an insurance company product. The product will pay $12,500 at the end of this year. Thereafter, the payments will grow annually at a 2.5 annual percent rate forever. Jack will be able to invest his cash flows at an annual rate of 5 percent. What is the present value of this investment cash flow stream?

Group of answer choices

$416,667

$500,000

$512,500

$446,667