Martha is planning her retirement in 10 years' time. She contributes a lump sum deposit of $10,000 now in a plan earning 5.4% compounded semi-annually. Two years later, she will deposit $20,000 in another investment earning 4.8% compounded monthly. In the final 5 years, she plans on contributing $1,000 per month. Based on quarterly compounding, determine what the rate of interest will be on the final investment if she wishes to end up with $112,000.
A) 5.16%
B) 4.85%
C) 4.12%
D) 3.61%
E) 2.48%

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The Answer of Martha is planning her retirement in 10 years' time. She contributes a lump sum deposit of $10,000 now in a plan earning 5.4% compounded semi-annually. Two years later, she will deposit $20,000 in another investment earning 4.8% compounded monthly. In the final 5 years, she plans on contributing $1,000 per month. Based on quarterly compounding, determine what the rate of interest will be on the final investment if she wishes to end up with $112,000.
A) 5.16%
B) 4.85%
C) 4.12%
D) 3.61%
E) 2.48%

Martha Is Planning Her Retirement in 10 Years' Time