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Henry Fowler borrowed $96,770 on March 1, 2018. This amount plus accrued interest at 12% compounded semiannually is to be repaid on March 1, 2028.
Henry Fowler borrowed $96,770 on March 1, 2018. This amount plus accrued interest at 12% compounded semiannually is to be repaid on March 1, 2028. To retire this debt, Henry plans to contribute to a debt retirement fund in five equal amounts starting on March 1, 2023, and for the next 4 years. The fund is expected to earn 11% per annum. How much must be contributed each year by Henry Fowler to provide a fund sufficient to retire the debt on March 1, 2028?
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