Mike and Sam both want to have $10,000 in five years. Mike is good at investment so he expects to earn 8% per year on his investments. Sam expects a 5% rate of return per year. Which one of the following statements is correct concerning the amount of money they each need to invest today?

Select one:

a. Sam needs to deposit $1,030 more than Mike today.

b. Both Mike and Sam should deposit $7,500 today.

c. Sam needs to deposit $7,000 today.

d. Sam needs to deposit $1,500 more than Mike today.

e. Mike needs to deposit $5,800 today.