You want to buy a house in 4 years. Current down payments are $5,000 but housing costs are rising at 3% a year. You have $1,000 now and have put it in a savings account paying 3% APR compounded monthly. In 4 years your savings account will be worth:

Select one: a. $ 1,010.04 b. $ 1,125.51 c. $ 1,000.00 d. $ 1,127.33 e. $ 1,225.51