You Invest $1,000 at a Variable Rate of Interest

Multiple Choice

You invest $1,000 at a variable rate of interest.Initially the rate is 4% compounded annually for the first year,and the rate increases one-half of one percent annually for five years (year two's rate is 4.5%,year three's rate is 5.0%,etc.) .How much will you have in the account after five years?

A) $1,276
B) $1,359
C) $1,462
D) $1,338