EdEd

borrowed

$ $900$ comma $000$$$900,000$

to build a recording studio in his home. The total amount of the debt along with

$77\%$

annual interest must be repaid in

$1818$

years. He decides to invest in a debt sinking fund that will be used to retire the debt. The fund earns

$88\%$

interest and requires him to pay an equal amount each year$($end of each$$year$)$ starting in Year

$88$

and lasting through maturity. Interest is compounded annually.Requirement

What amount must

EdEd

contribute each year in order to successfully retire the debt in

$1818$

$$years$?($Use the present value and future value$$ 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, X$.$XXXXX$.$ Round intermediary currency computations and your final answer to the nearest$$ cent, $X$.$XX$.)$

Question content area bottom

Part $1$

Ed must contribute

each year in order to successfully retire the debt in $18$ years.