Please provide explanation.

An eighteen year old receives an annuity on her birthday from her great uncle's estate paying 1,000 on her nineteenth birthday and subsequent payments that increase by $500 per year until age thirty-five. Find the value of the annuity on her eighteenth birthday assuming an interest rate of 8% compounded monthly. (A) 31, 935 (B) 34, 595 (C) 36, 406 (D) 37, 416 (E) 40, 877