Investment a Pays 8 Percent Simple Interest for 10 Years

Multiple Choice

Investment A pays 8 percent simple interest for 10 years. Investment B pays 7.75 percent compound interest for 10 years. Both require an initial $10,000 investment. The future value of A minus the future value of B is equal to ______________ (to the nearest penny) .

A) -$3,094.67
B) $3,094.67
C) $1,643.32
D) $2,500.00
E) -$2,500.00