You Just Won the Magazine Sweepstakes and Opted to Take

You just won the magazine sweepstakes and opted to take unending payments. The first payment will be $50,000 and will be paid one year from today. Every year thereafter, the payments will increase by 2.5 percent annually. What is the present value of your prize at a discount rate of 7.9 percent? 

A) $1,350,000.00 
B) $1,348,409.50 
C) $925,925.93 
D) $891,006.67 
E) $846,918.22