And Daphne Are Saving for Their Daughter Ellen's College Education

Multiple Choice

and Daphne are saving for their daughter Ellen's college education.Ellen just turned 10 at Their long-run financial plan is to add an additional $5,000 in each of the next 4 years Then they plan to make 3 equal annual contributions in each of the following years, t = 5, 6, and 7.They expect their investment account to earn 9%.How large must the annual payments at t = 5, 6, and 7 be to cover Ellen's anticipated college costs?

A) $1,965.21
B) $2,068.64
C) $2,177.51
D) $2,292.12
E) $2,412.76