[olanipekun]

This is very helpful.

Hello Sir Morfat, i need your help on this question, please help me out:

Luke plans to buy a holiday villa in 5 years’ time for $1.5m cash but of course, he needs to start setting aside an equal amount of funds each year for 5 years starting immediately earning a rate of 10% interest per annum compound.

To the nearest $100, how much does he need to set aside each year?
A. $223,400
B. $245,600
C. $359,800
D. $395,800

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