E6-16 (L03) (Retirement of Debt) Ricky Fowler borrowed $70,000 on March 1, 2015. This amount plus accrued interest at 6%
compounded semiannually is to be repaid March 1, 2025. To retire this debt, Ricky plans to contribute to a debt retirement fund five equal amounts starting on March 1, 2020, and for the next 4 years. The fund is expected to earn 5% per annum.
Instructions How much must be contributed each year by Ricky Fowler to provide a fund sufficient to retire the debt on March 1, 2025?