Question
Newman Fowler borrowed $91,380 on March 1, 2018. This amount plus accrued interest at 8% compounded semiannually is to be repaid March 1, 2028. To
Newman Fowler borrowed $91,380 on March 1, 2018. This amount plus accrued interest at 8% compounded semiannually is to be repaid March 1, 2028. To retire this debt, Newman plans to contribute to a debt retirement fund five equal amounts starting on March 1, 2023, and for the next 4 years. The fund is expected to earn 6% per annum. How much must be contributed each year by Newman Fowler to provide a fund sufficient to retire the debt on March 1, 2028? (Round factor values to 5 decimal places, and final answer to 0 decimal places)
Annual contribution to debt retirement fund |
$_______________________
2% 6% 1 1.02000 1.06000 (n) Periods 1 2 3 4 5 1.04040 1.06121 1.08243 1.10408 FVFn = (1 + i)" 21/2% 3% 1.02500 1.03000 1.05063 1.06090 1.07689 1.09273 1.10381 1.12551 1.13141 1.15927 4% 1.04000 1.08160 1.12486 1.16986 1.21665 5% 1.05000 1.10250 1.15763 1.21551 1.27628 1.12360 1.19102 1.26248 1.33823 6 7 8 1.12616 1.14869 1.17166 1.19509 1.21899 1.15969 1.18869 1.21840 1.24886 1.28008 1.19405 1.22987 1.26677 1.30477 1.34392 1.26532 1.31593 1.36857 1.42331 1.48024 1.34010 1.40710 1.47746 1.55133 1.62889 1.41852 1.50363 1.59385 1.68948 1.79085 9 10 11 1.89830 12 2.01220 13 14 1.24337 1.26824 1.29361 1.31948 1.34587 1.31209 1.34489 1.37851 1.41297 1.44830 1.38423 1.42576 1.46853 1.51259 1.55797 1.53945 1.60103 1.66507 1.73168 1.80094 1.71034 1.79586 1.88565 1.97993 2.07893 2.13293 2.26090 2.39656 15 16 17 18 1.37279 1.40024 1.42825 1.45681 1.48595 1.48451 1.52162 1.55966 1.59865 1.63862 1.60471 1.65285 1.70243 1.75351 1.80611 1.87298 1.94790 2.02582 2.10685 2.19112 2.18287 2.29202 2.40662 2.52695 2.65330 2.54035 2.69277 2.85434 3.02560 3.20714 19 20 21 22 23 1.51567 1.54598 1.57690 1.60844 1.64061 1.67958 1.72157 1.76461 1.80873 1.85394 1.86029 1.91610 1.97359 2.03279 2.09378 2.27877 2.36992 2.46472 2.56330 2.66584 2.78596 2.92526 3.07152 3.22510 3-38635 3-39956 3.60354 3.81975 4.04893 4.29187 24 25
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