Question: Luis has a management contract which grants him a lump sum payment of $20 million be paid upon the completion of his first five years

Luis has a management contract which grants him a lump sum payment of $20 million be paid upon the completion of his first five years of service. The company wants to set aside an equal amount of funds each year to cover the anticipated cash outflow. The company can earn 4.5 percent, compounded monthly, on these funds. How much must the company set aside the end of each month for this purpose

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