Question 1139774
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(1) The solution by the other tutor tells how much you need to invest at 5% compounded quarterly to have the lump sum of 20*$2600 = $52000 at the end of 5 years.  Since the fund is supposed to provide distributions of $2600 each quarter for 20 quarters, that is clearly not the answer you are looking for.<br>
(2) From the wording of the problem, it appears as though the parents want to make the lump sum investment at the beginning of the 5 years during which the distributions are to be made.  That is not the usual way it is done; usually the investment is made long before the beginning of those 5 years.<br>
Re-post the problem, making it clear in your statement of the problem when the initial investment is made.