#4

Chandler Company has a 24-year debt obligation of $27000 thousand and wishes to set up a sinking fund to accumulate the funds so it can repay the debt when it matures. It can invest its sinking fund payments in an account earning 3% per year. How much would it need to pay each year to meet its obligation? Assume the annual payments will be made at the beginning of each year. Present your answer in $ thousands, rounded to one decimal place (e.g., 23.4).