Tyrone Wishes to Save $35,000 in 5 Years' Time

Multiple Choice

Tyrone wishes to save $35,000 in 5 years' time. In the last 2 years, he will contribute $125 per quarter in an account earning 3.6% compounded monthly. In the middle 2 years, he will contribute $75 per month with the same monthly contributions. He plans to contribute $1,000 semi-annually during the first year, in the same account. Using the financial functions on the calculator, determine the initial deposit to be made by Tyrone if he wishes to have $35,000 in his account in 5 years.

A) $24,918.90
B) $24,990.11
C) $25,105.13
D) $25,427.15
E) $25,681.18