Grandpa Smith Has $200,000 in a Bank Account, Which Pays

Multiple Choice

Grandpa Smith has $200,000 in a bank account, which pays him interest at 4%. What is the largest amount of money that he could take out now and still leave enough in the account so that he can earn $500 per month in interest?

A) $60,000
B) $50,000
C) $120,000
D) $150,000
E) $30,000