You just graduated from college and got a job. You decide to buy a house as soon as possible. However you don't have any savings and almost all houses require a 20% down payment. You just received a graduation gift from your parents of $5,000 cash and you decide to put it right away in a mutual fund that generates a 9% annual return compounded monthly. Also you decided to start saving and aiming to buy a house in 2 years. You believe you can save $2,000 per month starting a month from now in the same mutual fund. By the end of the the 2 years, how expensive of a house can you afford to buy?

A.

331,564

B.

251,768

C.

202,789

D.

291,795