If the Discount Rate Is 5 Percent, the Present Value

If the discount rate is 5 percent, the present value of annual $100, 000 payments in perpetuity (i.e., continued indefinitely into the future) is

A) $2, 000, 000
B) $1, 246, 296
C) $1, 000, 000
D) $976, 463
E) infinite