1. Jake graduated from college last month and wants to buy a condo within the next five years. He knows that he needs about $20,000 to cover the down payment and closing costs for the condo to keep his payments within an affordable range. He plans to earn six percent. How much must Jake invest today to have $20,000 five years from now? (Use Exhibit 1-C and round your answer to the nearest dollar amount.)

A. 15,803

B. 14,940

C. 13,050

D. 16,342

E. 16,116

2. If Jake has $5,000 to invest, how much more can he earn if he can invest his money in an account earning six percent instead of four percent over the next five years? (Use Exhibit 1-A and round your answer to the nearest dollar amount.)

A. 550

B. 505

C. 705

D. 650

E. 605

Jake needs $20,000 ten years from today to buy a house. How much more will he need to deposit today if he can only earn five percent instead of six percent on his money? (Use Exhibit 1-C and round your answer to the nearest dollar amount.)

A. 520

B. 920

C. 720

D. 1,320

E. 1,120

I would like an short, concise explanation