Mejia borrowed $200,000 on March 1, 2013. This amount plus accrued interest at 10% compounded semiannually is to be repaid March 1, 2023. To retire this debt, Mejia plans to contribute to a debt retirement fund five equal amounts starting on March 1, 2018, and for the next four years. The fund is expected to earn 8% per annum.
Instructions
How much must Mejia contribute each year to provide a fund sufficient to retire the debt on March 1, 2023?