(Ignore Income Taxes in This Problem

Multiple Choice

(Ignore income taxes in this problem.) Henry wants to send his son to computer school which will start one year from today. Payments of $2,000 are due at the end of each of the next two years. What lump-sum will Henry have to invest now at 12% per year in order to have $2,000 at the end of each of the next two years?

A) $4,240
B) $3,380
C) $1,594
D) $2,508