Seymore Named His Wife,Penelope,the Beneficiary of a $100,000 Insurance Policy

Seymore named his wife,Penelope,the beneficiary of a $100,000 insurance policy on his life.The policy provided that,upon his death,the proceeds would be paid at a rate of $4,000 per year plus interest over a 25-year period.Seymore died June 25,2012,and in 2013 Penelope received a payment of $5,200 from the insurance company.What amount should she include in her gross income for 2013?

A) $200
B) $1,200
C) $4,000
D) $5,200
E) None of the above