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 options are correct.