You Decide to Move to the Mountains of Colorado and Want

You decide to move to the mountains of Colorado and want to know what would be a good offering price on a home,but you know you'll only own it a year.Fortunately,you are armed with the simple residential investment equation.You have the following information: the real interest rate is 4 percent;the depreciation rate of homes is 5 percent;average rent is $1,000;and you will have a 20 percent downpayment.You offer the owner,rounding to the nearest dollar,

A) $25,000.
B) $125,000.
C) $4,167.
D) $17,241.
E) $50,000.