You saving up to buy a car, you plan on making your first savings deposit one year from today, and then making deposits for the following 3 years. These are the amounts you plan to save at the end of each year:
Year 1 Projected Savings Amount $6000
Year 2 Projected Savings Amount $6000
Year 3 Projected Savings Amount $7000
Year 4 Projected Savings Amount $7000
You expect to earn an annual rate of 6% per year throughout. What amount will you have available at the end, at the time 4, when you will buy the car?
A $21308 B $28308 C $7420 D $26000 E $27560