Bates Company issued ($1,000,000,) 12-year bonds and agreed to make annual sinking fund deposits of ($60,000.) The

Question:

Bates Company issued $$1,000,000,$ 12-year bonds and agreed to make annual sinking fund deposits of $$60,000.$ The deposits are made at the end of each year into an account paying 6% annual interest. What amount will be in the sinking fund at the end of 12 years?

Compute the future value of a single amount and of an annuity.

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