Growing Perpetuity: Jack Benny Is Planning to Invest in an Insurance

Growing perpetuity: Jack Benny is planning to invest in an insurance company product. The product will pay $10,000 at the end of this year. Thereafter, the payments will grow annually at a 3 per cent rate forever. Jack will be able to invest his cash flows at a rate of 6.5 per cent. What is the present value of this investment cash flow stream? (Round to the nearest dollar.)

A) $326,908
B) $312,766
C) $285,714
D) $258,133