Theo Needs $40,000 as a Down Payment for a House

Multiple Choice

Theo needs $40,000 as a down payment for a house 6 years from now.He earns 2.5 percent on his savings.Theo can either deposit one lump sum today for this purpose or he can wait a year and deposit a lump sum.How much additional money must he deposit if he waits for one year rather than making the deposit today?

A) $778.98
B) $811.13
C) $862.30
D) $948.03
E) $1,020.18