You Have Just Been Awarded a $200,000 Insurance Settlement

Multiple Choice

You have just been awarded a $200,000 insurance settlement. The insurance company has offered to invest this amount at a guaranteed interest rate of 4.5% for ten years. You think you can invest this money yourself and earn an average return of 8%. If you are able to do that, how much more will your settlement be worth ten years from now than if you had left the funds with the insurance company?

A) $78,829.69
B) $86,991.91
C) $118,009.42
D) $121,191.12
E) $137,188.23