Last year during his vacation in Mexico, Professor Moore spotted the vacation home of his dreams. It was reasonable priced a $200,000. Professor Moore who is 40 years old knows that he won't be ready to retire until he's 65. In his mind Professor Moon estimates that the annual rate of inflation until he retires will be 5% per yoar and he realizes that this will affect the price he'll pay fo the house when he does retire. But Professor Moore feels that he can find investments that will provide him with a return of 9% pe annum. Professor Moore is willing to make annual end of the year payments into an investment paying 9% so that when he retire at 65 he will have enough money to purchase the house. a How much will the house cost in 25 years given a rate of inflation of 5%? a. $565,720 Ob. $767,400 Oc. $677,200 $867, 030 If Professor Moore makes his deposits at the start of each year instead of at the end how much must he deposit each year? $7,064 $6,982 $8,452 $7,335 a. How much must Professor Moore invest at the end of each of the next 25 years to have the cash to purchase the house when he retires? a $7.996 b. $8,034 c. $9,231 d. none of the above