Mai's Mother Is Currently Living in a Nursing Home, and She

Mai's mother is currently living in a nursing home, and she is worried about the financial drain of her mother's long-term care costs. She would like to start planning for her own potential future in assisted living. Her quote for long-term care insurance is $1,900 per year until she is eligible for the maximum benefits of $240 per day (inflation protected) for a 3-year benefit period. She is 55 years old and can earn an APY of 3.5%, and the long-term inflation rate is 1.7%. If she estimates her long-term care needs based on her mother at 85 years old and plans to retire in Arizona, where the current cost of nursing care is $78,000, what should she do?

A) Purchase the long-term care policy because it will cover more than the 3 years of nursing care in Arizona.
B) Purchase the long-term care policy because it will cover more than the invested value of the annual $1,900 over 30 years but not the full 3 years of nursing care.
C) Invest the $1,900 a year instead of purchasing the long-term care policy because it's worth more than the total benefit amount.
D) Invest the $1,900 a year instead of purchasing the long-term care policy because it will cover more than the 3 years of nursing care in Arizona.