Jesper Parnevik borrowed $70,000 on March 1, 2006. This amount plus accrued interest at 12% compounded semiannually is to be repaid March 1, 2016. To retire this debt, Jesper plans to contribute to a debt retirement fund five equal amounts starting on March 1, 2011, and for the next 4 years. The fund is expected to earn 10% per annum.
Instructions
How much must be contributed each year by Jesper Parnevik to provide a fund sufficient to retire the debt on March 1, 2016?