Antoinette needs $20,000 as a down payment for a house five years from now. She earns 4% on her savings. Antoinette can either deposit one lump sum today for this purpose or she can wait a year and deposit a lump sum. How much additional money must Antoinette deposit if she waits for one year rather than making the deposit today?
A) $639.19
B) $657.54
C) $658.23
D) $659.04
E) $800.00

Question

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The Answer of Antoinette needs $20,000 as a down payment for a house five years from now. She earns 4% on her savings. Antoinette can either deposit one lump sum today for this purpose or she can wait a year and deposit a lump sum. How much additional money must Antoinette deposit if she waits for one year rather than making the deposit today?
A) $639.19
B) $657.54
C) $658.23
D) $659.04
E) $800.00

Antoinette Needs $20,000 as a Down Payment for a House