Alan Burnie Has Just Started Work and Has Been Wanting

Multiple Choice

Alan Burnie has just started work and has been wanting to buy a sleek powerboat for sometime. Rather than purchase and finance now, he plans to save every three months and increase the deposits by 3% per annum as he expects raises at least that large. How much must the first deposit be if the boat costs $25,000 today and he expects to earn 10% on the money over the next five years?

A) $1,501.56
B) $2,081.99
C) $1,561.49
D) $6,097.27
E) $2,359.82