Mr Chips, Inc

Multiple Choice

Mr. Chips, Inc. wishes to accumulate $1,200,000 to be used to pay off a balloon note at the end of 5 years.
How much will Mr. Chips need to invest today to accumulate the desired amount if the investment earns an annual rate of 8% compounded quarterly? (Select the closest amount.)

A) $257,458
B) $1,783,167
C) $807,564
D) $1,086,877