60.1K

Verified Solution

Link Copied!

9/ help me out!

Shia borrowed $1,200,000 to build a recording studio in his home. The total amount of the dobt along with 8% annual interest must be repaid in 18 years. He decides fo invest will be used to retre the debt. The fund earns 9% interest and requies him to pay an equal amount each year (ond of each yoar) starting in Year 6 and lasting through maturit" annualiy (Click the icon to view the Future Value of $1 table) (Click the icon to view the Present Value of $1 table) (Click the icon to view the Future Value of an Ordinary Annuity table) (Click the icon to view the Present Value of an Ordinary Annuity table) (Click the icon to view the Future Value of an Annuity Due table) (Click the icon to view the Present Value of an Annuty Due tables) Requirement What amount must Shia contribute each year in order to successfully retre the dobt in 18 years? (Use the present value and fulure value tables, the formula method, a financia spreadsheet for your calculations if using present and fulure value tables or the formula method, use factor amounts rounded to five decimal places, XXXXXX. Round interne computations and your final answer to the noarest cent, 5 ) Shia must contribute each year in order to successtully retue the debt in 18 years

Answer & Explanation Solved by verified expert

See Answer