Fenland Company plans to retire $130 million in bonds in five years. To save for the retirement, the company plans to make annual deposits into an account at the beginning of each year during that period. The account is expected to earn 8% interest compounded annually. At the end of the five years, there needs to be enough money in the account to pay off the bonds. What amount does Fenland need to invest at the beginning of each year? Multiple Choice $20,518,001 $21,780,574 $27,925,324 Cannot be determined from the given information

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.