John Says That the Future Value of $250 Saved for One

Multiple Choice

John says that the future value of $250 saved for one year at 6 percent interest is less than the future value of $250 saved for two years at 3 percent interest. George says that the present value of a $250 payment to be received in one year when the interest rate is 6 percent is less than the value of a $250 payment to be received in two years when the interest rate is 3 percent.

A) John and George are both correct.
B) John and George are both incorrect.
C) Only John is correct.
D) Only George is correct.