You Estimate That It Will Take Five Years to Complete

You estimate that it will take five years to complete your university education. Your parents want to invest enough money today at 12 per cent to enable you to withdraw $5000 at the end of each year for the next five years with nothing left at the end of the five-year period. How much money do they need today?

A) $8810
B) $18 025
C) $25 000
D) $31 765

Correct Answer:

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