You think it would be really neat to walk out on the court at half time of an Illinois home basketball game to present the Athletic Association with a check to endow a basketball scholarship. You plan is to do this 30 years from today. By then, the Athletic Association estimates they will need an amount equal to the present value at 5% of a perpetuity paying $48,000 a year in order to endow this scholarship. Undaunted, you decide to try to meet this goal by making 30 equal beginning of year deposits that will earn 9% compounded annually. How large of an annual deposit must you make in order to endow this basketball scholarship?

$5,914

$7,409

$7,043

$6,461