Assume that you are 30 years oldtoday, and that you are planning on retirement at age 65. Your current salary is $42,000 and you expect your salary to increase at a rate of 3% per year as long as you work. To save for yourretirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be8% of thisyear's salary. Likewise, you expect to deposit8% of your salary each year until you reach age 65. Assume that the rate of interest is 7%.

The future value(FV) at retirement(age 65) of your savings is closestto:

A.

$330,234

B.

$660,468

C.

$462,328

D.

$726,515