The village of Kieler recently completed the construction of a new water tower. The entire cost of the water tower was $925,000, and the state paid $370,000 of the total cost through the awarding of a grant. In addition, the village can delay paying the balance of the cost for 30 years (without paying any interest during the 30 years). To finance the balance, the village board will at this time assess its 598 homeowners a one-time flat fee surcharge and then invest this money in a 30-year CD paying 7.5% interest compounded monthly. 

(a) What is the balance due on the water tower?

(b) How much will the village of Kieler need to invest at this time in the CD to raise the balance due in 30 years?

(c) What amount should each homeowner pay as a surcharge?

If necessary, round all dollar figures to the nearest cent and round percents to the nearest hundredth of a percent.

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KIELE