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 $20 million to be paid upon the completion of the president's first ten years of service.The company can earn 5.5 percent on its investments and wants to set aside an equal amount of money each year over the next ten years to fund this obligation.How much money must the firm save each year?

A) $1,895,734.60
B) $1,398,346.17
C) $1,401,033.67
D) $1,553,355.37
E) $1,848,018.22