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

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 5½ 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

Correct Answer:

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