Thelma Is Planning for Her Son's College Education to Begin

Multiple Choice

Thelma is planning for her son's college education to begin five years from today. She estimates the yearly tuition, books, and living expenses to be $5,000 per year for a four-year degree, assuming th expenses incur only at the end of the year. How much must Thelma deposit today, at an interest rate of 8 percent, for her son to be able to withdraw $5,000 per year for four years of college?

A) $20,000
B) $13,620
C) $39,520
D) $11,270