The winner of a multistate mega millions lottery jackpot worth $175 million was given the option of taking payments of $7 million per year for 25 years, beginning 1 year from now, or taking $109.355 million now. The interest rate that renders the two options equivalent to each other is closest to:

(a) 4%

(b) 5%

(c) 6%

(d) 7%