Two annuities are payable over a period of 10 years. Annuity 1 is 1,000 per year, payable continuously. The force of interest equals 0.7 for annuity 1. Annuity 2 is 1,000 per year, payable quarterly. The effective annual interest rate is 0.07 for annuity 2. The difference between the present value of annuity 2 and the present value of annuity 1 is:

a) less than 10

b) 10 to 20

c) 20 to 30

d) 30 to 40

e) more than 40