Last Year, You Deposited $25,000 into a Retirement Savings Account

Multiple Choice

Last year, you deposited $25,000 into a retirement savings account at a fixed rate of 7.5%. Today, you could earn a fixed rate of 8% on a similar type account. However, your rate is fixed and cannot
Be adjusted. How much less could you have deposited last year if you could have earned a fixed
Rate of 8% and still have the same amount as you currently will when you retire 40 years from
Today?

A) $1,218.46 less
B) $1,666.67 less
C) $2,408.28 less
D) $3,628.09 less
E) $4,331.30 less