Jesper Parnevik borrowed $95,210 on March 1, 2012. This amount plus accrued inte

Question

Jesper Parnevik borrowed $95,210 on March 1, 2012. This amount plus accrued interest at 12% compounded semiannual 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. (Use the tables below.) 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 retirement fund Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Answer:Required amount to reapy loan in 2022: using formula: FV = PV*(1+i)^n

FV = 95210*(1+.06)^20 =$305,352.07

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.