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 10 percent on your money. Which option should you take and why?

A. You should accept the $200,000 because the payments are only worth $100,123 to you today.

B. You should accept the payments because they are worth $219,415 to you today.

C. You should accept the $200,000 because the payments are only worth $195,413 to you today.

D. You should accept the $200,000 because the payments are only worth $145,075 to you today.