After graduation,you plan to work for Dynamo Corporation for 12 years and then start your own business.You expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12) .The first deposit will be made a year from today.In addition,your grandfather just gave you a $25,000 graduation gift which you will deposit immediately (t = 0) .If the account earns 9% compounded annually,how much will you have when you start your business 12 years from now?
A) $238,176
B) $250,712
C) $263,907
D) $277,797
E) $291,687
Correct Answer:
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