Exercise 6-15

Leon Bogut just received a signing bonus of $945,600. His plan is to invest this payment in a fund that will earn 11%, compounded annually.

If Bogut plans to establish the AB Foundation once the fund grows to $2,684,956, how many years until he can establish the foundation? ______years

Instead of investing the entire $945,600, Bogut invests $318,800 today and plans to make 10 equal annual investments into the fund beginning one year from today. What amount should the payments be if Bogut plans to establish the $2,684,956 foundation at the end of 10 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Payments

________$