Business Finance Homework Help

Dear Prof. Soyeb,

Here’s the question.

Bob borrowed $100,000 on 1/1/2015. The interest rate of 10% is compounded semiannually to be repaid on 1/1/2025. To repay this Bob wants to start making 5 equal annual deposits into fund that earns 8% annum on 1/1/2020.

Required: What is the amount of the five annual deposits that Bob needs to make?

Thanks.

Robelyn