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 $50,000 today or receive payments of $641 a month for ten years. You can earn 6.5% on your money. Which option should you take and why?

A) You should accept the payments because they are worth $56,451.91 today.
B) You should accept the payments because they are worth $56,523.74 today.
C) You should accept the payments because they are worth $56,737.08 today.
D) You should accept the $50,000 because the payments are only worth $47,757.69 today.
E) You should accept the $50,000 because the payments are only worth $47,808.17 today.