You Expect to Rent Out a Vacation Home on Sanibel

You expect to rent out a vacation home on Sanibel Island for $800 a month as an investment.Upkeep is estimated at $3, 000 a year.If the current market interest rate is 5 percent, you are willing to pay __________ for the house.

A) $132, 000
B) $100, 000
C) $160, 000
D) $192, 000
E) $800, 000