Marvin Has Determined That He Can Save at Least $6

Multiple Choice

Marvin has determined that he can save at least $6 per day by quitting smoking and cutting out one cup of coffee or one can of pop per day. Therefore, he has decided to make contributions of $175 to his Retirement Savings Plan (RSP) at the end of each month for 35 years. He anticipates that his RSP will earn 13.2% compounded monthly. He is 20 years old now and therefore he will be only 55 when this plan is completed. How much money will be in his RSP when he is 55 years of age?

A) Less than $500,000
B) Between $500,000 and $1,000,000
C) Between $1,000,000 and $1,500,000
D) Between $1,500,000 and $2,000,000
E) More than $2,000,000