Sagheer Is Setting Up a Fund to Help His Grandson's

question 2

Multiple Choice

Sagheer is setting up a fund to help his grandson's university education. He wants his grandson to be able to withdraw $3000 every 3 months for 3 years after he starts university. His first withdrawal will be 5 years from now. If the fund can earn 7.2% compounded quarterly, what single amount contributed today will provide for the withdrawal?

• A)$32 119
• B)$22 083
• C)$52 077
• D)$42 041
• E)$36 000

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