Use the timeline below to help you! An employee is planning to retire in 10 years. To plan for this retirement, she deposits $1250 at the end of each month into a savings plan. The balance is then converted into a fund from which end-of-month withdrawals are made for the next 20 years. Money is worth 3.5% compounded monthly.

What is the value of FV₁?

Select one:

a.

$12 662.73

a. $12 662.73

b.

$2 180 868.44

b. $2 180 868.44

c.

$12 665.35

c. $12 665.35

d.

$179 290.64