John and Daphne Are Saving for Their Daughter Ellen's College

Multiple Choice

John and Daphne are saving for their daughter Ellen's college education. Ellen just turned 10 at 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