After Many Years Teaching Finance at Capilano University,Allen Wants to Establish

Multiple Choice

After many years teaching finance at Capilano University,Allen wants to establish a scholarship to offer 4 $1,000 awards each year to students whose performance is excellent in finance courses.If the university can negotiate a 12.75% effective interest rate,at least how much does Allen need to endorse over to the scholarship (closest estimate) ?

A) $32,000
B) $31,000
C) $31,500
D) $32,500