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 $200,000 today or receive payments of $1,400 a month for 20 years.You can earn a 6 percent annual rate on your money,compounded monthly.Which option should you take and why?

A) You should accept the monthly payments because they are worth $209,414 to you.
B) You should accept the $200,000 lump sum because the monthly payments are only worth $16,057 to you today.
C) You should accept the monthly payments because they are worth $336,000 to you.
D) You should accept the $200,000 lump sum because the monthly payments are only worth $189,311 to you today.
E) You should accept the $200,000 lump sum because the monthly payments are only worth $195,413 to you today.
F) None of the above.