Curt borrowed $$1,200,000$ to build a recording studio in his home. The total amount of the debt along with $12\%$ annual interest must be repaid in $14$ years. He decides to invest in a debt sinking fund that will be used to retire the debt. The fund earns $13\%$ interest and requires him to pay an equal amount each year $($end of each year$)$ starting in Year $9$ and lasting through maturity. Interest is compounded annually.

$($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.$)$

E

$($Click the icon to view the Future Value of an Annuity Due table.$)($Click the icon to view the Present Value of an Annuity Due table.$)$

Requirement

What amount must Curt contribute each year in order to successfully retire the debt in $14$ years? $($Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, $xxxxxx.$ Round intermediary currency computations and your final answer to the nearest cent, $$xxx.)$

Curt must contribute $$ each year in order to successfully retire the debt in $14$ years.