Miguel just graduated from university.He plans to work for five years and then leave for California.He figures that he can save $3500 a year for the first three years and $5000 a year for the next two years.These savings will start one year from now.In addition, his family gave him a $2500 graduation gift.If he puts the gift, and the future savings when they start, into an account that pays 7.75% compounded annually, what will his financial 'stake' be when he leaves for California five years from now? Round off to the nearest $1.
A)$36 082
B)$24 725
C)$30 003
D)$27 178

Question

Quizplus · Accepted Answer

The Answer of Miguel just graduated from university.He plans to work for five years and then leave for California.He figures that he can save $3500 a year for the first three years and $5000 a year for the next two years.These savings will start one year from now.In addition, his family gave him a $2500 graduation gift.If he puts the gift, and the future savings when they start, into an account that pays 7.75% compounded annually, what will his financial 'stake' be when he leaves for California five years from now? Round off to the nearest $1.
A)$36 082
B)$24 725
C)$30 003
D)$27 178

Miguel Just Graduated from University