Rao plans to travel around Asia with his friends in 3 years. The trip is expected to cost a total of $10,000 at that time. His parents have deposited $5,000 into his bank account at HSBC, paying 6% interest annually, maturing 3 years from now. However, as Rao has figured out, this will not be enough to cover the cost of the trip. That is why he has asked his grandma to pay the remaining amount, which she has kindly agreed to. Suppose that Rao is going to invest the money given by his grandma into a bank account at another bank, earning 10% over the next 3 years. How much must grandma deposit today, so that Rao can go for his Asia trip 3 years from today?

Select one:

a. $3,345

b. $3,039

c. $3,757

d. $5,801