To make provision for the possible impact of recessions in the future, Broome Mutual Bank would like to set up a reserve fund. The fund will earn an interest rate of 5% per annum. If the fund pays a fixed amount of $17 million to the bank annually for an infinite period, starting one year from today and the annual payment grows at 1.5% per annum, how much does the bank need in the fund today?

Select one:

a. $440.6 million

b. $510.0 million

c. $462.6 million

d. $485.7 million