In light of the impact of the coronavirus pandemic, Kalbarri Mutual Bank in Western Australia, would like to set up a reserve fund. The fund will earn an interest rate of 4% per annum. If the fund pays a fixed amount of $20 million to the bank annually for an infinite period, starting two years from today, how much does the bank need in the fund today?

Select one:

a. $520.0 million

b. $444.5 million

c. $500.0 million

d. $408.8 million