You Plan to Work for Strickland Corporation for 12 Years

Multiple Choice

You plan to work for Strickland Corporation for 12 years after graduation and after that want to start your own business.You expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12) .The first deposit will be made a year from today.In addition, your grandmother just gave you a $25,000 graduation gift that you will deposit immediately (t = 0) .If the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?

A) $238,176
B) $250,712
C) $263,907
D) $277,797
E) $291,687