Taylor Has Saved $400 at the End of Every Month

Multiple Choice

Taylor has saved $400 at the end of every month for the last 4 years with the intention of paying cash for a new car. She has earned a fixed annual rate of 4% over the 4 year period; interest is compounded monthly. How much can she pay for her new car at the end of the fourth year?

A) $20,784
B) $55,705
C) $17,716
D) $22,272