You want to save $53,700 in the next 10 years to buy a car. The savings account you are thinking about offers 4.50% annually. You also plan to increase your annual deposits by 1.50% each year. What should be your deposit at the end of the first year?

a.

$4,370

b.

$4,684

c.

$4,105

d.

$4,926

e.

$3,766

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The correct answer is: $4,105