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

---

Definitions:

Skin Turgor

The skin's elasticity or ability to return to its normal shape after being pinched; a measure of hydration and skin health.

Anaphylactic Reaction

A severe, potentially life-threatening allergic reaction that can occur rapidly and affect multiple body systems.

Epinephrine

A hormone and medication, also known as adrenaline, that increases heart rate, tightens blood vessels, and opens airways to alleviate severe allergic reactions.

Vascular Access

A medical technique used to access the circulatory system for administering medications, fluids, or for blood sampling.