Suppose Becky Has Her Choice of $10,000 at the End

Multiple Choice

Suppose Becky has her choice of $10,000 at the end of each month for life or a single prize of $1.5 million. She is 35 years old and her life expectancy is 40 more years. If she takes the $1.5 million, spends $700,000 of it, and invests the remainder at an annual rate of 7.0% compounded monthly, what monthly annuity will she receive for the next 40 years? Round your answer to the nearest cent. ​

A) $497.15
B) $4,971.45
C) $52,821.66
D) $1,864.29
E) $7,457.18