A Family Spends $40,000 on Living Expenses

A family spends $40,000 on living expenses.With an annual inflation rate of 3 percent,they can expect to spend approximately ________ in one year.Use Exhibit 1-A.(Round time value factors to 3 decimal places and final answer to the nearest dollar amount.)

A) $40,300
B) $41,200
C) $42,000
D) $43,720
E) $46,000