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Exercise 6-16 Morgan Fowler borrowed $91,860 on March 1, 2015. This amount plus accrued interest at...

Exercise 6-16

Morgan Fowler borrowed $91,860 on March 1, 2015. This amount plus accrued interest at 6% compounded semiannually is to be repaid March 1, 2025. To retire this debt, Morgan plans to contribute to a debt retirement fund five equal amounts starting on March 1, 2020, and for the next 4 years. The fund is expected to earn 5% per annum.

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How much must be contributed each year by Morgan Fowler to provide a fund sufficient to retire the debt on March 1, 2025? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,583.)

Annual contribution to debt retirement fund
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The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format . For detailed answer refer to the supporting sheet.

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