Tracy Won a $100 Million Jackpot

Tracy won a $100 million jackpot.She can receive the jackpot as a $5 million payment each year for 20 years, or she can ask to receive the present value of all those payments all at once now.Assume an annual interest rate of 5 percent.If she decides to take the present value payment, about how much will she receive?

A) $52.1 million
B) $62.3 million
C) $71.4 million
D) $78.6 million