Evangeline is 30 years old today, and she is planning to retire at age 65. Her current salary is $45,000 and she expects her salary to increase at a rate of 5% per year as long as she works. To save for her retirement, she plans on making annual contributions to a retirement account. Her first contribution will be made next year on her 31st birthday and will be 8% of her salary. Likewise, she will deposit 8% of her salary each year until she reaches age 65. If the rate of interest on her retirement saving account is 7%, how much will Evangeline have in her retirement account when she reaches the age of 65?

Select one:

a.$975,347

b.$928,902

c.$892,981

d.$785,604

e.$698,453