As the Beneficiary of a Life Insurance Policy, You Have

As the beneficiary of a life insurance policy, you have two options for receiving the insurance proceeds. You can receive a lump sum of $200,000 today or receive payments of $1,400 a month for 20 years. If you can earn 6 percent on your money, which option should you take and why? 

A) You should accept the payments because they are worth $202,414 to you today.
B) You should accept the payments because they are worth $201,846 to you today. 
C) You should accept the payments because they are worth $201,210 to you today. 
D) You should accept the $200,000 because the payments are only worth $189,311 to you today. 
E) You should accept the $200,000 because the payments are only worth $195,413 to you today.