Future Value: Ning Gao Is Planning to Buy a House

Multiple Choice

Future value: Ning Gao is planning to buy a house in five years. She is looking to invest $25,000 today in an index mutual fund that will provide her a return of 12 percent annually. How much will she have at the end of five years? (Round to the nearest dollar.)

A) $45,000
B) $28,000
C) $44,059
D) None of the above