Jay Coleman just graduated university.He plans to work for five years and then go backpacking through Asia.He figures that he can save $3,500 a year for the first three years and $5,000 a year for the next two years.These savings will start one year from now.In addition,his family gave him a $2,500 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 Asia five years from now? Round off to the nearest $1.
A)$36,082
B)$24,725
C)$30,003
D)$27,178

Question

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The Answer of Jay Coleman just graduated university.He plans to work for five years and then go backpacking through Asia.He figures that he can save $3,500 a year for the first three years and $5,000 a year for the next two years.These savings will start one year from now.In addition,his family gave him a $2,500 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 Asia five years from now? Round off to the nearest $1.
A)$36,082
B)$24,725
C)$30,003
D)$27,178

Jay Coleman Just Graduated University