Christian Plans to Initially Contribute $3,000 and Increase His Yearly

Multiple Choice

Christian plans to initially contribute $3,000 and increase his yearly contributions by 5% each year for 20 years. If the rate of interest is 7% compounded annually, determine the amount of his payment in year 12.

A) $5,387.56
B) $5,687.56
C) $5,987.56
D) $6,287.56
E) $6,587.56