On January 1,2006,a Graduate Student Developed a 5-Year Financial Plan

Multiple Choice

On January 1,2006,a graduate student developed a 5-year financial plan which would provide enough money at the end of her graduate work (January 1,2011) to open a business of her own.Her plan was to deposit $8,000 per year for 5 years,starting immediately,into an account paying 10 percent compounded annually.Her activities proceeded according to plan except that at the end of her third year (1/1/09) she withdrew $5,000 to take a Caribbean cruise,at the end of the fourth year (1/1/10) she withdrew $5,000 to buy a used Prelude,and at the end of the fifth year (1/1/11) she had to withdraw $5,000 to pay to have her dissertation typed.Her account,at the end of the fifth year,was less than the amount she had originally planned on by how much?

A) $15,373
B) $16,550
C) $32,290
D) $38,352
E) $13,975