Michael Is Planning for His Son's College Education to Begin

Multiple Choice

Michael is planning for his son's college education to begin ten years from today. He estimates the yearly tuition, books, and living expenses to be $10,000 per year for a four year degree. How much must Michael deposit today, at an interest rate of 12 percent, for his son to be able to withdraw$10,000 per year for four years of college?

A) $40,000
B) $10,953
C) $18,950
D) $12,880