A Small Foundry Agrees to Pay $250,000 Two Years from Now

Multiple Choice

A small foundry agrees to pay $250,000 two years from now to a supplier for a given amount of coking coal.The foundry plans to deposit a fixed amount in a bank account every three months,starting three months from now,so that at the end of two years the account holds $250,000.If the account pays 5.5% APR compounded monthly,how much must be deposited every three months?

A) $29,770
B) $29,777
C) $29,740
D) $31,250
E) $28,077