Kuznets Rental Center Requires $500,000 in Financing Over the Next

Kuznets Rental Center requires $500,000 in financing over the next two years. Kuznets can borrow long-term debt at 8 percent interest per year for two years. Alternatively, Kuznets can borrow short-term debt at 6 percent interest in the first year and 9 percent interest in the second year. Assuming Kuznets pays off the interest at the end of each year, which of the following statements is true?

A) Kuznets will end up paying more in total interest under the long-term financing plan.
B) Kuznets will end up paying less in total interest under the long-term financing plan.
C) Kuznets will pay less in the first year under the long-term financing plan.
D) Kuznets will pay less in the second year under the short-term financing plan.