Looking Far Ahead, Your Grandmother Makes a One-Time Payment of $200,000

Multiple Choice

Looking far ahead, your grandmother makes a one-time payment of $200,000 to obtain a monthly income for 20 years. Assuming a steady interest rate of 4% compounded monthly, what monthly payments will she receive?

A) $833.33
B) $1000.83
C) $1117.96
D) $1211.96