4) You are trying to decide how and when to take your next cruise. You could invest $200 a month for four years in a money market that is earning 4%, or you could go now, taking out a loan for $10,000 at 11% and paying it off over the next four years. If inflation runs at 2% for the next four years, what is the true difference in cost between the two options?

Multiple Choice answer options below:

$400

$800

$1,205.16

$2,420.06