(61)

Riverbed Corporation, having recently issued a $20.009,700. 15-year bond issue. is committed to make annual sinking fund deposits of $608,900. The deposits are made on the last day of each year and yield a return of 10%.

Click here to view factor tables

Will the fund at the end of 15 years be sufficient to retire the bonds?

Future value of an ordinary annuity

Will funds be sufficient?

eTextbook and Media