Leo will make an initial deposit into an account of $1,000 at time t=0, followed by five annual deposits of $200 at times t=1,2,3,4,5.

Leo will receive payments from the account at times t=7,8,9, starting at $1,500 and decreasing by $Q per year. The balance in the account after the last payment is $0.

You may assume this account earns an effective annual interest rate of 7%. Determine Q.

Possible Answers

A

< $450

B

$450 but < $490

C

$490 but < $530

D

$530 but < $570

E

$570