You Would Like to Travel in South America 5 Years

Multiple Choice

You would like to travel in South America 5 years from now, and you can save $3, 100 per year, beginning one year from today.You plan to deposit the funds in a mutual fund that you think will return 8.5% per year.Under these conditions, how much would you have just after you make the 5th deposit, 5 years from now?

A) $18, 369
B) $19, 287
C) $20, 251
D) $21, 264
E) $22, 327