Mark is comparing two investments, A and B. A pays its return in interest, whereas B is a growth investment whose return is in the form of price appreciation. Assume Mark sells Investment B after one year. What is the difference between Investments A and B on an after-tax return basis after one year if Marks marginal tax rate is 32% and both investments are expected to earn 10% on an initial investment of $190000?

The after-tax return on Investment A is $3230 more than B.

The after-tax return on Investment B is $3230 more than A.

There is no difference between the two.

The after-tax return on Investment B is $2280 more than A.