On January 1, 2020, Denero Company Issued 10-Year Bonds with a Face

Multiple Choice

On January 1, 2020, Denero Company issued 10-year bonds with a face value of $6,000,000 due on December 31, 2029. 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, 2020. How much must Denero deposit each year to achieve this investment goal, assuming that it will earn 5% interest compounded annually? (Use spreadsheet software or a financial calculator to calculate your answer. Do not round any intermediary calculations, and round your final answer to the nearest dollar.)

A) $777,027
B) $454,612
C) $477,027
D) $600,000