How much life insurance should Stan Moneymaker buy if he wants to leave enough money to his family so that they get $25,000 per year forever in constant dollars as of the year of his death? The interest rate from the life insurance company is 7% per year, while the inflation rate is expected to be 4% per year. The first payment occurs one year after Stan's death.
(a) $866,000
(b) $357,000
(c) $625,000
(d) $841,000