Exercise 6-16

Newman Fowler borrowed $93,290 on March 1, 2015. This amount plus accrued interest at 8% compounded semiannually is to be repaid March 1, 2025. To retire this debt, Newman 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 7% per annum. Click here to view factor tables How much must be contributed each year by Newman Fowler to provide a fund sufficient to retire the debt on March 1, 2025? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Annual contribution to debt retirement fund $