A Recent College Graduate Begins a Savings Plan at Age

A recent college graduate begins a savings plan at age 27 by investing $600 at the end of each month in an account that earns an annual rate of 7.3%, compounded monthly. If this plan is followed for 10 years, how much should the monthly contributions be for the next 28 years in order to be able to withdraw $10,000 at the end of each month from the account for the next 25 years? Round your answer to the nearest cent. ​

A) $796.22
B) $516.96
C) $2,189.51
D) $214.45
E) $86.41

Correct Answer:

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