At time t = 0, Sirdar invests $2 000 in a fund earning j₄ = 8% p.a., but payable annually.

He reinvests each interest payment in individual separate funds each earning j₄ = 9% p.a., but payable annually.

The interest payments from the separate funds are accumulated in a side fund that guarantees an annual effective rate of 7%.

Determine the total value of all funds at t = 10.

a.

$4 485

b.

$3 649

c.

$4 395

d.

$3 964

e.

$4 339