A supplier of doors provided a contractor with two options to make a payment for the supply of doors for a new condominium development project: Option A: $120,500 immediately and another payment of $75,600 in six months. Option B: $30,000 immediately and another payment of $165,500 in five months. If money earns 4% p.a. simple interest, calculate the option that would be economically better for the contractor and the amount by which he would benefit. Use today as the focal date.

AppendixLO1