Your Rich Uncle Wants to Set Up a Fund That

Multiple Choice

Your rich uncle wants to set up a fund that allows you to withdraw $12,000 per year for the four years you are at university.The first payment will be made the day you start, followed by three other payments starting one year from then.If interest rates are 4%, the amount your uncle needs to have on hand the day before the first payment is closest to?

A) $33,301
B) $43,558
C) $45,301
D) $46,080