Suppose that you learn that a friend recently received a substantial inheritance. Your friend was given two choices: 1) wait 10 years and receive the inheritance or 2) receive the present value of the inheritance (using a 3% discount rate) now. Your friend chose option #2, and received a hefty $700,000. How much would your friend have received if she waited 10 years to take the inheritance?
A) 910,000
B) 520,866
C) 1,000,000
D) 940,741