1. Ten years ago, your friends mum wrote an Indian-Italian fusion cookbook which has become a global bestseller. She has been receiving annual royalties based on revenues reported by the publisher. These revenues started at $1 million in the first year and grew steadily by 5% per year. Her royalty rate has been 15% of the revenues. Recently, she hired an auditor who discovered that the publisher had been under-reporting the revenues. The book had actually earned 10% more in annual revenues than had been reported on her royalty statements. Assuming the publisher pays an interest rate of 4% p.a. on missed annual payments, the money owed by the publisher is closest to: (a)$136,888. b) $150,634. c) $222,976. d) $245,367