Cosmos Touring Wishes to Replace Its Luxury Bus in 10

Multiple Choice

Cosmos Touring wishes to replace its luxury bus in 10 years by accumulating funds in a special account. The new bus is expected to cost $180,000. How much must Cosmos put into the fund in equal, end-of-year amounts if earnings are expected to be 8% for the first 4 years and 10% thereafter?

A) $12,107
B) $11,465
C) $9,901
D) $14,727