You Need to Borrow $1 000 for a Period of 10

Multiple Choice

You need to borrow $1 000 for a period of 10 years. Bank A will lend you the money at 10% interest, compounded annually, whereas Bank B will lend you the money at 10% interest, compounded monthly. At the end of ten years, how much more interest will you owe if you borrow from Bank B instead of Bank A?

A) $74.59
B) $92.50
C) $113.30
D) $137.39
E) $148.12