Determining Loan Repayments
Response to the following problem:
Rockness needs $40,000 to pay off a loan due on December 31, 2019. His plans included the making of 10 annual deposits beginning on December 31, 2010 in accumulating a fund to pay off the loan. Without making a precise calculation, Rockness made three annual deposits of $4,000 each on December 31, 2010, 2011, and 2012, which have been earning interest at 10% compounded annually
Required:
What is the equal amount of each of the next seven deposits for the period December 31, 2013 to December 31, 2019 to reach the fund objective, assuming that the fund will continue to earn interest at 10% compounded annually?