Paige wants to have $40,000 for a down payment on a house fi…
Paige wants to have $40,000 for a down payment on a house five years from now. She can either deposit one lump sum today or wait one year and deposit a lump sum then. Assume an interest rate of 3.5 percent, compounded annually. How much additional money must she deposit if she waits for one year rather than making the deposit today?