On January 1, 2013, Kimberly purchased a 20-year annuity for $40,000 from MAGDA MUTUAL (an established insurance company). Under the annuity, Kimberly will receive payments of $370 for each month of annuity's life. What amount of the annuity payments may be excluded from Kimberly's Gross Income for 2013 (assume all 12 monthly payments are made in 2013)?
a. $4,440
b. $2,440
c. $2,000
d. $0