Suppose you want to buy a house five years from today. You currently have

$25,000 saved toward this purchase, but don't think you'll be able to save any more money, other than the interest that the $25,000 will earn between now and then, before you buy the house. Assuming that you will need to put down a 20 percent down payment and pay an additional 5 percent in closing costs to purchase a house, and that you can earn an APR of 4.80 percent on the

$25,000 over the next five years, how much house can you buy? That is, what will be the maximum total purchase price that you will be able to afford?

a. $30,280

b. $98,163

c. $126,167

d. $132,358