Your Grandmother Has Told You She Can Either Give You

Your grandmother has told you she can either give you $4,000 now or $5,000 when you graduate from college in three years. Your savings account earns 7% interest, compounded annually. Which option would be worth more to you now, and how much more?

A) The $4,000 now is worth $81.50 more than the $5,000 in the future.
B) The $4,000 now is worth $100.00 more than the $5,000 in the future.
C) The $5,000 in the future is worth $81.50 more than the $4,000 now.
D) The $5,000 in the future is worth $100.00 more than the $4,000 now.