Question
Steve Milner borrowed $120,000 on July 1, 2017. This amount plus accrued interest at 8% compounded semiannually is to be repaid in total on July
Steve Milner borrowed $120,000 on July 1, 2017. This amount plus accrued interest at 8% compounded semiannually is to be repaid in total on July 1, 2027. To retire this debt, Milner plans to contribute to a debt retirement fund five equal amounts starting on July 1, 2022 and continuing for the next four years. The fund is expected to earn 6% per annum. (Use the below table.) Compute how much must be contributed each year by Steve Milner to provide a fund sufficient to retire the debt on July 1, 2027? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places, e.g. 458,581.50.)
Amount to be contributed $
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