On the day you were born, your parents opened a college savings account with an initial deposit of $1,400. On every one of your birthdays since, your parents have made an additional deposit that is 3% larger than the amount deposited in the previous year. The account earns 6.2% interest annually. Immediately after your parents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to which of the following?

B).

The deposit made on your 18th birthday will be the final deposit made into the account. You plan on using the balance in the account to fund your college education. You will be attending a 4-year institution and you will assume that tuition costs will remain constant over the next four years. If the first annual tuition payment will be made on your 19th birthday, what is the maximum annual tuition expense that the balance in your account can sustain if you plan on attending college for four years? You may assume that the money will remain in the account until it is used to make a tuition payment.

The maximum annual tuition expense is: