Compare the Economic Values of Two Options Given an Annual

Multiple Choice

Compare the economic values of two options given an annual rate of 9.25%. Option 1 - $900 in 5 months and $400 in 9 months. Option 2 - $550 in 7 months and $825 in 10 months. Given the following information, choose the best option.

A) Option 1 - benefit of $52.35
B) Option 1 - benefit of $47.15
C) No difference between options
D) Option 2 - benefit of $52.35
E) Option 2 - benefit of $47.15