In 30 Years, You Plan to Set Up a Fellowship

Multiple Choice

In 30 years, you plan to set up a fellowship fund for your university that pays out $100,000 each year in perpetuity with an annually compounded discount rate of 5%.In order to set up the fund in 30 years, how much do you need to save each year (starting at the end of this year) assuming you can get a semi-annually compounded return of 10% on your savings for the next 30 years?

A) $66,666.67
B) $11,595.56
C) $21,215.49
D) $30,744.90
E) $30,000.00