A Local Magazine Is Offering a $2,500 Grand Prize to One

A local magazine is offering a $2,500 grand prize to one lucky winner. $1,000 will be paid on the day of the drawing. The remaining $1,500 will be paid in three annual payments of $500 each, starting one year after the drawing. How much would this prize be worth to you if you can earn 9 percent on your money?

A) $2,048.18
B) $2,164.29
C) $2,265.65
D) $2,450.14
E) $2,545.54