An alumni wants to establish a scholarship that covers the full cost of tuition for one high achiever each year in perpetuity. The university, on the advice of the Finance Department has opted to begin awarding it in 5 years. This year, the estimated full cost of studies for one student is $27,950 and is expected to grow annually at a 3% inflation rate. If the scholarship is invest to earn a nominal rate of 6%, how much must the donor contribute today to fund the scholarship?
a) $937,221.07
b) $603,894.27
c) $742,294.46
d) $831,293.87