Fenland Co

Multiple Choice

Fenland Co. plans to retire $100 million in bonds in five years, so it wishes to fund a savings account at the beginning of each year during that period for which it expects to earn 8% annually. At the end of the five years, there will be enough money in the account to pay off the bonds. What amount does Fenland need to invest each year?

A) $15,783,077.
B) $17,045,650.
C) $23,190,400.
D) Cannot be determined from the given information.