Over a 3-Year Period, a Series of Deposits Are Made

Multiple Choice

Over a 3-year period, a series of deposits are made to a savings account. All deposits within a given year are equal in size and are made at the beginning of each relevant period. Deposits for each year total $1,200. The following chart shows the frequency of deposits and the interest rate credited for each year: Year Frequency of deposits Interest rate credited during year 1 Semi-annually d (12) = 6.0% 2 Quarterly i (3) = 8.0% 3 Every 2 months ? = 7.0% X = the value of the account at the end of the 3rd year.In what range is X?

A) Less than $3,989
B) $3,989 but less than $4,017
C) $4,017 but less than $4,045
D) $4,045 but less than $4,073
E) $4,073 or more