Elaine Has Just Received an Insurance Settlement of $25,000

Multiple Choice

Elaine has just received an insurance settlement of $25,000. She wants to save this money until her daughter goes to college. If she can earn an average of 6.5 percent, compounded annually, how much will she have saved when her daughter enters college 8 years from now?

A) $38,000.00
B) $40,929.02
C) $41,374.89
D) $41,899.60
E) $42,000.00