Seymore Named His Wife, Penelope, the Beneficiary of a $100,000

Seymore named his wife, Penelope, the beneficiary of a $100,000 insurance policy on his life. The policy provided that, upon his death, the proceeds would be paid at a rate of $4,000 per year plus interest over a 25-year period. Seymore died June 25, 2015, and in 2016 Penelope received a payment of $5,200 from the insurance company. What amount should she include in her gross income for 2016?

A) $200
B) $1,200
C) $4,000
D) $5,200
E) None of the above