You Plan to Place a $55,000 Down Payment on a Lake

Multiple Choice

You plan to place a $55,000 down payment on a lake cabin in Southern Oregon in five years.If you invest in a long-term CD earning an annual rate of 4.50%,how much would you need to invest today to have enough for the down payment in five years?

A) $23,326
B) $30,605
C) $44,135
D) $46,264