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

question 18

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