Jill starts to save money for her tuition payments needed for a reputed MBA program she...

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Jill starts to save money for her tuition payments needed for areputed MBA program she wishes to begin in 5 years. Beginning todayshe will deposit $5000 each year into a MBA tuition account. Thelast payment will be made 5 years from today (i.e., she will make 6equal annual deposits). Starting three months after making herfinal deposit, she will withdraw quarterly to pay tuition for eachof the following 5 quarters (i.e. she will make 5 withdrawals inall). Assume that the MBA tuition account earns 1% quarterly duringthe period she makes withdrawals. The quarterly tuition she iscommitted to paying towards her MBA is closest to:
1) $6,766 2) $6,545 3) $6,610 4) $7,036 5) $6,833
Please answer. Thank you!

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Answer Correct answer is 5 6833 Explanation Annual deposit 5000 Effective annual rate of interest 1 1 4 1 406 Beginning today she will deposit 5000 each year into a MBA See Answer

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Jill starts to save money for her tuition payments needed for areputed MBA program she wishes to begin in 5 years. Beginning todayshe will deposit $5000 each year into a MBA tuition account. Thelast payment will be made 5 years from today (i.e., she will make 6equal annual deposits). Starting three months after making herfinal deposit, she will withdraw quarterly to pay tuition for eachof the following 5 quarters (i.e. she will make 5 withdrawals inall). Assume that the MBA tuition account earns 1% quarterly duringthe period she makes withdrawals. The quarterly tuition she iscommitted to paying towards her MBA is closest to:1) $6,766 2) $6,545 3) $6,610 4) $7,036 5) $6,833Please answer. Thank you!