Norman Is Planning for His Retirement

Multiple Choice

Norman is planning for his retirement. He initially deposits $25,000 in a retirement plan earning 4.4% compounded quarterly over 25 years. Three years later he begins another investment where he contributes $800 per quarter over 22 years. Based on monthly compounding, determine what the rate of interest will be on the final investment if he wishes to end up with $210,000.

A) 5.37%
B) 5.48%
C) 5.59%
D) 5.72%
E) 5.85%