You want to quit your job and go back to school for a law d

You want to quit your job and go back to school for a law d account that pays 5 egree 4 years from now, and you plan to save $3.500 per year You will make 4 deposits in an 7% interest. Under these assumptions, how much will you have 4 years from today? O a. $18,652 O b. $17,763 ? ?. $16,112 O d. $16,918 O e. $19,584

Solution

Correct answer is option C. $16,112

Calculation of Balance in Year 4 @5.7% Interest
Year	Opening balance	Additional Deposits	Total	Interest	Closing balance
1	3500	0	3500	199.5	3699.5
2	3699.5	3500	7199.5	410.3715	7609.872
3	7609.872	3500	11109.87	633.2627	11743.13
4	11743.13	3500	15243.13	868.8584	16111.99