Jackie Plans to Open Her Own Bookstore in 10 Years

Multiple Choice

Jackie plans to open her own bookstore in 10 years. To raise the "seed" money, she has committed the $10,000 she now has in a mutual fund. In addition, she plans to save $2,000 per year (end of year) for the next 5 years and $3,000 per year (end of year) for the following 5 years. How much "seed" money will Jackie have in 10 years if the investments earn 10 percent per year compounded annually?

A) $76,129
B) $63,925
C) $44,255
D) $159,370