You just won the Powerball, as a result you have the choice between taking $75 million today or taking a 20-year annuity due. Interest rates are expected to hold at 5% over the next 20-years. How much would the annuity due need to be annually for you to be indifferent between cash now or taking the annuity?

A.

$5,731,613.37

B.

$3,750,000.00

C.

$6,018,194.04

D.

$2,268,194.04

E.

$4,247,613.37