As an Excellent Student in Environmental Ecology You Have Been

Multiple Choice

As an excellent student in environmental ecology you have been awarded the "Clean Effluent Prize" by state agency. You (or your estate) are to receive $300 forever from the state or the agency will allow you to choose $400 over the next 25 years. Payments are to be received semi-annually and if the market rate of interest is 6% what is the value of the two options respectively?

A) $30,000; $10,000.25
B) $5,000; $5,145.95
C) $10,000; $6,304.74
D) $2,500; $3,859.46
E) $6,666.67; $5,113.34