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16.3. ABC plans to set up a sinking fund to pay off bonds and related interest payments. The bonds mature in 2 installments (serial bonds):
16.3. ABC plans to set up a sinking fund to pay off bonds and related interest payments. The bonds mature in 2 installments ("serial bonds"): $100k on 12/31/C and $100k on 12/31/E. The bonds pay interest on 12/31 at 10%. If the sinking fund is set up on 1/1/A and is to earn 8% compounded annually, how much must be deposited? [ck: Deposit: 147,442.]
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