A company financed a plant expansion of $750 000 at 9% compounded annually. The financing agreement requires

Question:

A company financed a plant expansion of $750 000 at 9% compounded annually. The financing agreement requires annual payments of interest and the funding of the debt through equal annual payments for 15 years into a sinking fund earning 7% compounded annually. What is the book value of the debt after 5 years?

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