A Small Foundry Agrees to Pay $220,000 Two Years from Now

Multiple Choice

A small foundry agrees to pay $220,000 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 $220,000. If the account pays 12.5% APR compounded monthly, how much must be deposited every three months?

A) $24,602
B) $27,063
C) $29,523
D) $31,983