In five years, Joe wants to buy a boat that costs $75,000 in today’s dollars. He can earn 8% return on his investments and he expects the boat to increase in price by 3% each year. What will Joe’s serial payment at the end of the second year be, if he wants to buy the boat in 5 years?

a. $11,097.12.

b. $13,612.65.

c. $14,021.03,

d. $14,441.67.