You are planning to retire in 40 years. Currently, the typical house that you plan to purchase costs $300,000, but you expect inflation to increase the price of the house at a rate of 5 percent over the next 40 years. In order to buy the house upon retirement, how much must you save each year in equal annual end-of-year deposits if you can earn 10 percent annually?

a. $4,500.

b. $5,772

c. $14,750

d. $4,772