Answer:
c.$16,112
Explanation:
Since the payment of $3,500 per year is to be paid for 4 years, starting immediately, therefore the future value of annuity will be determined to calculate the amount that you will have after 4 years.
Future value of annuity=(1+i)*R[((1+i)^n-1)/i]
R=Payment to made per year=$3,500
i=interest rate=5.7%
n=number of payments to be made in future=4
Future value of annuity=(1+5.7%)*3,500[((1+5.7%)^4-1)/5.7%]
=$16,112
So the answer is c.$16,112
