The Estradas Are Planning to Buy a House 4 Year(s)

Multiple Choice

The Estradas are planning to buy a house 4 year(s) from now. Housing experts in their area have estimated that the cost of a home will increase at a rate of 8% / year during that 4-year period. If this economic prediction holds true, how much can they expect to pay for a house that currently costs $40,000? Round your answer to two decimal places.

A) $54,742.76
B) $54,419.56
C) $55,026.64
D) $55,085.11