Santoz borrowed $225,000 on March 1, 2021. This amount plus accrued interest at 12% compound semiannually is to be repaid March 1, 2031. To retire this debt, Santoz plans to contribute to a de retirement fund five equal amounts starting on March 1, 2026, and for the next 4 years. The fund expected to earn 10% per annum. Required: How much must be contributed each year by Santoz to provide a fund sufficient to retire the debt

Santoz borrowed $225,000 on March 1, 2021. This amount plus accrued interest at 12% compound semiannually is to be repaid March 1, 2031. To retire this debt, Santoz plans to contribute to a de retirement fund five equal amounts starting on March 1, 2026, and for the next 4 years. The fund expected to earn 10% per annum. Required: How much must be contributed each year by Santoz to provide a fund sufficient to retire the debt

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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