You plan to purchase a home five years from now and believe you will need $50,000 for the downpayment. You further assume you can earn 15% per year on your investments to save for this sum. Using just annual compounding and contributing just once per year, how much would you have to save per year to reach your goal (use ordinary annuity assumptions, i.e. make contribution at end of each period)? If your return assumption increased to 18% per year and your contributions were monthly, what would be the required payment (use monthly compounding for this second part of question as well)? Annual and monthly amounts respectively are:

a. $7,416, $520

b. $10,000, $565

c. $10,000, $520

d. $7,416, $565