Arvidas Recently Won the Central States Lottery of $3,500,000

Multiple Choice

Arvidas recently won the Central States Lottery of $3,500,000.The lottery pays either a total of twenty $175,000 payments per year with the first payment today (i.e.,an annuity due) ,or $2,000,000 today.At what interest rate would Arvidas be financially indifferent between these two payout choices?

A) 6.04%
B) 6.36%
C) 6.88%
D) 8.00%