Theo wants to have $40,000 for a down payment on a house five years from now. He can either deposit one lump sum today or he can wait one year and deposit a lump sum. Assume an annual interest rate of 3.5 percent. How much additional money must he deposit if he waits for one year rather than making the deposit today?
A) $1,001.98
B) $986.13
C) $1,178.76
D) $948.03
E) $1,020.18

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The Answer of Theo wants to have $40,000 for a down payment on a house five years from now. He can either deposit one lump sum today or he can wait one year and deposit a lump sum. Assume an annual interest rate of 3.5 percent. How much additional money must he deposit if he waits for one year rather than making the deposit today?
A) $1,001.98
B) $986.13
C) $1,178.76
D) $948.03
E) $1,020.18

Theo Wants to Have $40,000 for a Down Payment on a House