单选题 It will cost $ 20000 a year for four years when an 8 - year old child is ready for college. How much should be invested today if the child will make the first of four annual withdrawals 10 - years from today? The expected rate of return is 8 percent.

A、

A. $ 30683.
B、

B. $ 66243.
C、

C. $ 33138.

【正确答案】 C

【答案解析】Two steps. First, find the present value of the college costs as of the end of year (Remember that the PV of an ordinary annuity is as of time =0. If the first payment is in year 10, then the present value of the annuity is indexed to the end of year 9 ). N=4; I/Y=8; PMT=20000; CPT→PV=$66242.54. Second, find the present value of this single sum: N=9; I/Y=8; FV=66242.54; PMT=0; CPT→PV=33137.76.