Tessa Won the Lottery for $2,500,000 but Due to a Change

Multiple Choice

Tessa won the lottery for $2,500,000 but due to a change in state laws she will not be able to collect it for three years. Ralph is willing to give her a lump sum today in return for the payment in three years. If current interest rates are 14% per year, how much will Tessa receive today?

A) $1,687,430
B) $5,804,080
C) $2,500,000
D) $3,703,860