An Investment Will Pay $205 000 in One Year's Time

Multiple Choice

An investment will pay $205 000 in one year's time for an investment of $183 000 today. If the market interest rate is 8% over the same period, should this investment be made?

A) No, because the investment will yield $6 240 less than putting the money in a bank.
B) Yes, because the investment will yield $4 280 more than putting the money in a bank.
C) Yes, because the investment will yield $2 360 more than putting the money in a bank.
D) Yes, because the investment will yield $7 360 more than putting the money in a bank.