Palmer wants to set up a fund to provide a half-yearly scholarship of $2,500 in perpetuity. An amount is to be deposited into the fund on December 17, 2019 to allow for this. Scholarships are paid half-yearly starting on December 17, 2023, and the fund can be assumed to earn an annual nominal inerest rate of 12.5% convertible semiannually.

To the nearest dollar, the amount that Palmer should deposit on December 17, 2019 to just cover this is:

A

$3,822

B

$20,000

C

$26,167

D

$40,000

E

$61,145