Answer : $ 24381.31

Working notes for the above answer is as under

Colin’s grandparents want to make a gift for $ 50,000

Duration = 12 Years so n =12

interest monthly if the rate quoted by the bank is 6 percent

So manothly accumulated

Per year interest rate is 6% so monthly interest Rate is as under

= 6% /12 months

=0.5% per month

Now let us find out the amount deposit today in an account that accrues interest monthly if the rate quoted by the bank is 6 percent

Present Value Formula for a Future Value:

=PV = FV / (1+r/m)mt

Pv = 50,000 / (1 +6/12)6/12*12

   = 50000 / (1+.005)24

   =24381.31