It is January 2026, and you have just started a new job as a graduate. You would like to start saving today to purchase a house in 5 years. You plan to make an $8,000 deposit today into your savings account and you would like to continue making annual deposits of $8,000 at the end of each year for the next 5 years. However, you notice that you will get a pay increase at the end of this year (December 2026) and at the end of each year for the next several years. As a result, you plan to increase your annual deposit by 7.5% every year, starting at the end of this year. If the discount rate is 5.75% EAR, then how much do you expect to have saved by the end of the fifth year?

A. $51,708

B. $39,098

C. $66,166

D. $63,586