The answer is (B). but from where he get: 1.690

(Ignore income taxes in this problem.) Henry wants to send his son to computer school which will start one year from today. Payments of $2,000 are due at the end of each of the next two years. What lump-sum will Henry have to invest now at 12% per year in order to have $2,000 at the end of each of the next two years?

A. $4,240 B. $3,380 C. $1,594 D. $2,508

PV of ordinary annuity = 2,000 x 1.690