Juan is single and retired on January 1, 2019 at age 62. He is entitled to receive monthly payments of $1,500 over his life from his employer’s qualified pension plan. The payments began January 1, 2019. He contributed $71,500 to the plan prior to his retirement. Using the simplified method, how much of the payments will be included in his income for 2019?

a.$1,225.

b.$3,300.

c.$14,700.

d.$18,000.