Fall07:Grace decides that creating a perpetual scholarship is too costly (see Problem 17)

Grace decides
that creating a perpetual scholarship is too costly (see Problem 17). Instead, she would like to support the education of
her favourite grand-nephew, Stephen, who plans to begin university in three
years. How much will Grace have to invest today, at 7 percent, to be able to
give Stephen $4,000 at the end of each year for four years?
Topic: Ordinary Annuities
Level of difficulty: Easy