Which of the following investments has a larger future value: Investment Aa $1,000 investment earning 5% per year for 6 years, or Investment Ba $500 investment earning 10% per year for 6 years, with a bonus of an extra $500 added at the end of the sixth year?

A. Investment B, with a future value of $1,386.

B. Investment A, with a future value of $1,386.

C. Investment A, with a future value of $1,340.

D. The investments have equal value.

n investment promises a payoff of $195 two and one-half years from today. At a discount rate of 7.5% per year, what is the present value of this investment?

A. $162.03

B. $162.75

C. $169.47

D. There is not enough information to answer this question.