You just graduated, and you plan to work for 5 years and then to buy a house. You figure you can save $3,000 a year for the first 2 years and $4,000 a year for the next 3 years. These savings will start one year from now. In addition, your family has just given you a $10,000 graduation gift. If you put the gift now, and your future savings when they start, into an account which pays 12 percent compounded annually, what will your financial "stake" be when you ready to buy your first dream house 5 years from now?

Select one:

a. $22,433

b. $22,729

c. $28,000

d. $40,056

e. $49,346