You Borrowed $50,000 Which You Must Repay in 10 Years

Multiple Choice

You borrowed $50,000 which you must repay in 10 years.You plan to make an initial deposit today,then make 9 more deposits at the beginning of each the next 9 years,but with the deposits increasing at the inflation rate.You expect to earn 5% on your funds,and you expect a 3% inflation rate.To the nearest dollar,how large must your initial deposit be to enable you to reach your $50,000 target?

A) $3,008
B) $3,342
C) $3,676
D) $4,044
E) $4,448