Question: Madison needs $40,000 as a down payment for a house five years from now. She earns 4% APR on her savings. She can either deposit

Madison needs $40,000 as a down payment for a house five years from now. She earns 4% APR on her savings. She can either deposit one lump sum today for this purpose or she can wait a year and deposit a lump sum. How much additional money must she deposit if she waits for one year rather than making the deposit today? a. $1,278.38 b. $1,315.08 c. $1,316.46 d. $1,318.08

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