At the Beginning of 2011, the Loretta Company Issued 10-Year

Multiple Choice

At the beginning of 2011, the Loretta Company issued 10-year bonds with a face value of $4, 000, 000 due on December 31, 2020.The company will accumulate a fund to retire these bonds at maturity.It will make ten annual deposits to the fund beginning on December 31, 2011.How much must the company deposit each year, assuming that it will earn 12% interest compounded annually?

A) $363, 636.36
B) $227, 936.65
C) $226, 008.92
D) $203, 514.87