Braden Says That $400 Saved for One Year at 4

Multiple Choice

Braden says that $400 saved for one year at 4 percent interest has a smaller future value than $400 saved for two years at 2 percent interest.Lefty says that the present value of $400 to be received one year from today if the interest rate is 4 percent exceeds the present value of $400 to be received two years from today if the interest rate is 2 percent.

A) Braden and Lefty are both correct.
B) Braden and Lefty are both incorrect.
C) Only Braden is correct.
D) Only Lefty is correct.