Howard Is Saving for a Long Holiday

Multiple Choice

Howard is saving for a long holiday.He deposits a fixed amount every month in a bank account with an EAR of 7.5%.If this account pays interest every month then how much should he save from each monthly paycheck in order to have $10,000 in the account in two years' time?

A) $161
B) $166
C) $388
D) $4818
E) $417