Question
Jesper Parnevik borrowed $95,050 on March 1, 2012. This amount plus accrued interest at 12% compounded semiannually is to be repaid March 1, 2022. To
Jesper Parnevik borrowed $95,050 on March 1, 2012. This amount plus accrued interest at 12% compounded semiannually is to be repaid March 1, 2022. To retire this debt, Jesper Parnevik plans to contribute to a debt retirement fund five equal amounts starting on March 1, 2017, and for the next 4 years. The fund is expected to earn 10% per annum.
How much must be contributed each year by Jesper Parnevik to provide a fund sufficient to retire the debt on March 1, 2022? (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 retirment fund: $_______ ?
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