You Are the Beneficiary of a Life Insurance Policy

You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $150,000 today or
Receive payments of $1,627.89 a month for 10 years. You can earn 7.5% on your money. Which
Option should you take and why?

A) You should accept the payments because they are worth $151,291.91 to you today.
B) You should accept the payments because they are worth $153,417.68 to you today.
C) You should accept the payments because they are worth $154,311.12 to you today.
D) You should accept the $150,000 because the payments are only worth $137,141.17 to you today.
E) You should accept the $150,000 because the payments are only worth $134,808.17 to you today.