Smith's salary on January 1, 2010 is at the annual rate of $10,000. On January 1 of each of the next four years, he will be given an increase of 4% over the annual rate effective the previous year.

In addition to paying Smith the salary as just described, Smith's employer will each year deposit an amount equal to 10% of Smith's annual salary into a fund that credits interest at a 16% nominal annual rate compounded quarterly. The deposit for any year is made on December 31 of that year, the first one being made December 31, 2010.

It is desired to know what the value will be of Smith's deposit account on January 1, 2015. In which of the following ranges does this value lie?

< $7,400

B

$7,400 but < $7,600

C

$7,600 but < $7,800

D

$7,800 but < $8,000

E

$8,000