It Is Estimated That the Cost for the First Year

Multiple Choice

It is estimated that the cost for the first year of college at Massive University,the state school with the best operations management program,will be $20,000 by the time your son is ready to matriculate.If prevailing interest rates will average 5 percent,what amount should you invest now to pay his tuition eight years from now?

A) Less than $13,000
B) Between $13,000 and $14,000
C) Between $14,000 and $15,000
D) More than $15,000