Edward Wishes to Have $450,000 in His Retirement Plans in 25

Edward wishes to have $450,000 in his retirement plans in 25 years. He plans to make annual contributions that will increase by 1% each year. If interest is earned at 5% compounded annually, determine the value of the initial payment in year 1.

A) $6,555.45
B) $7,005.45
C) $7,555.45
D) $8.005.45
E) $8,555.45