You Want to Buy a Nissan 350Z on Your 27th

Multiple Choice

You want to buy a Nissan 350Z on your 27th birthday.You have priced these cars and found that they currently sell for $30,000.You believe that the price will increase by 5 percent per year until you are ready to buy.You can presently invest to earn 14 percent.If you just turned 20 years old, how much must you invest at the end of each of the next 7 years to be able to purchase the Nissan in 7 years?

A) $4,945.57
B) $3,933.93
C) $7,714.72
D) $3,450.82
E) $6,030.43