Marty borrows $1000 from Harry on January 1, 2013, and promises to repay Harry on December 31, 2017, a payment that will result in Harry earning rate of interest of 10%.

Suppose Harry tells Marty he will lend him the money if he earns an annual rate of interest of 12%. this will result in Marty's paying Harry a

Select one:

a.larger amount than if the interest rate were 10%

b.smaller amount than if the interest rate were 10%