Answer:
D: $277,797
Explanation:
So I have made plans to work for strickland cooperation for 12 years after my graduation.
Saving and depositing $7500(t=1 to t=6)
&
$15,000(t=7 to t=12)
And a year before t =1, I go a $25,000 gift from Grandma! Yay!
So in my t=0, already have a head start of $25,000 with a compound interest of %9 every year on my saved capital.
Year 1: $25,000 + (9/100)% of $25,000
=$27,250 (this is my balance at the time of my first $7,500 deposit)
Therefore after my deposit I have $34,750
Year 2: $34,750 + (9/100)% of $34,750
= $37,877.5 + $7,500
= $45,377.5
Year 3: $45,377.5 + (9/100)% of $45,377.5
=$49,461.475 + $7500
= $56,961.475
Year 4: $56,961.475 + (9/100)% of $56,961.475
= $62,028.00775 + $7,500
= $69,588.00775
Year 5: $69,588.00775 + (9/100)% of $69,588.00775
=$75,850.92845 + $7,500
= $83,350.92845
Year 6: $83,350.92845 + (9/100)% of $83,350.92845
= $90,852.51201 + $7,500
= $98,352.51201
Year 7: $98,352.51201 + (9/100)% of $98,352.51201
= $107,204.2381 + $15,000
= $122,204.2381
Year 8: $122,204.2381 + (9/100)% of $122,204.2381
= $133,202.6195 + $15,000
= $148,202.6195
Year 9: $148,202.6195 + (9/100)% of $148,202.6195
= $161,540.8553 + $15,000
= $174,540.8553
Year 10: $174,540.8553 + (9/100)% of $174,540.8553
= $192,429.5323 + $15,000
= $207,429.5323
Year 11: $207,429.5323 + (9/100)% of $207,429.5323
= $226,098.1902 + $15,000
= $241,098.1902
Year 12: $241,098.1902 + (9/100)% of $241,098.1902
= $262,797.0273 + $15,000
= $277,797.0273
(This will be my balance at the end of the twelfth year approximately $277,797)
