Question
Sally would like to save money every month for her college tuition over the next five years. She plans to start by depositing $1,000 next
Sally would like to save money every month for her college tuition over the next five years. She plans to start by depositing $1,000 next month in an account that pays 6% annual percentage rate. Afterwards, the amount of her deposit will grow by 2% each month. Which of the following will increase the total amount of savings he can have five years later? I. Deposit a constant amount of $1,500 every month II. Deposit $1,200 in the first month and the savings grows by 1.5% each month III. Deposit $800 in the first month and the savings grows by 2.5% each month IV. Deposit in a different account that pays 6.2% effective annual rate.
A. I and II only B. I and III only C. II and III only D. II and IV only E. III and IV only
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