A Judge Requires Hoa to Make a Payment to Jordan

Multiple Choice

A judge requires Hoa to make a payment to Jordan. The judge says that Hoa can pay her either $10,000 today or $11,500 two years from today. Of the following interest rates, which is the highest one at which Hoa would be better off paying the money today?

A) 5 percent
B) 4 percent
C) 7 percent
D) 3 percent