FIN $2200-$Midterm Exam

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$8.$ Jim Mayer has deposited $$7,000$ in a guaranteed investment account with a promised rate of $7\%$ compounded annually. He plans to leave it there for $4$ full years when he will make a down payment on a car after graduation. How much of a down payment will he be able to make?

a$)$ $$8,960\mathrm{.}00$

b$)$ $$1,960\mathrm{.}00$

c$)$ $$2,175\mathrm{.}57$

d$)$ $$9,175\mathrm{.}57$

e$)$ None of the above.