Your Grandmother Just Died and Left You $40,000 in a Trust

Multiple Choice

Your grandmother just died and left you $40,000 in a trust fund that pays 6.5% interest.You must spend the money on your college education,and you must withdraw the money in 4 equal installments,beginning immediately.How much could you withdraw today and at the beginning of each of the next 3 years and end up with zero in the account?

A) $13,594.72
B) $10,415.31
C) $10,744.21
D) $8,770.79
E) $10,963.48