You Just Inherited a Trust That Will Pay You $100,000

Multiple Choice

You just inherited a trust that will pay you $100,000 per year in perpetuity.However,the first payment will not occur for exactly four more years.Assuming an 8% annual interest rate,what is the value of this trust?

A) $918,787
B) $992,290
C) $1,000,000
D) $1,250,000