Investment Appraisal

Hello,

Paulo plans to buy a holiday villa in five years’ time for cash. He estimates the cost will be $1.5m. He plans
to set aside the same amount of funds each year for five years, starting immediately and 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 $395,600

1. The answer is A.
2. Could you please explain what the question is actually asking to do?
-I am trying to figure this out in the answer but unable to do so.

Thanks