A Perpetuity Will Pay $1000 Per Year,starting Five Years After

Multiple Choice

A perpetuity will pay $1000 per year,starting five years after the perpetuity is purchased.What is the present value (PV) of this perpetuity on the date that it is purchased,given that the interest rate is 4%?

A) $1410
B) $20,582
C) $20,548
D) $34,604
E) $25,000