Tammy wants to set aside a sum of money today that will be sufficient to pay 4 years of college tuition. The 4 tuition payments will be made at the start of each year, beginning immediately. The first payment will be $10,000, and the tuition payments are expected to rise by 6% each year. If Tammy's money earns an after-tax interest rate of 8% per year, how much does she need to set aside today?

Answers:

A. $35,771.18

B. $38,902.54

C. $36,730.41

D. $43,746.00