The Parents of a Recent High School Graduate Decide to Invest

Multiple Choice

The parents of a recent high school graduate decide to invest the $14,000 she received for her high school graduation in a fund earning 5% annual interest. At the end of the four-year period, she expects to withdraw the money to pay for accumulated college tuition loans. What is the approximate amount that would be available for withdrawal after four years if interest is compounded monthly? (Use spreadsheet software or a financial calculator to calculate your answer. Do not round any intermediary calculations and round your final answer to the nearest dollar.)

A) $17,868
B) $17,017
C) $2,800
D) $17,093