Kay owns two annuities that will each pay 500 a month for the next 12 years. One payment is received at the beginning of each month while the other is received at the end of each month. At a discount rate of 7.25 percent, compounded monthly, What is the difference in the present values of these annuities?
1) 289.98
2) 312.50
3) 299.01
4) 308.00
5) 265.42