Westover Ridge Has a Management Contract with Its President That

Westover Ridge has a management contract with its president that requires a lump sum payment of $15 million to be paid upon the completion of the president's first 5 years of service.The company can earn 6.5 percent on its investments and wants to set aside an equal amount of money each year over the next 5 years to fund this obligation.How much money must the firm save each year?

A) $2,895,734.60
B) $2,698,346.17
C) $2,401,033.67
D) $2,634,518.06
E) $2,848,018.22